The underlying cause of inflation is

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Inflation is primarily caused by an increase in aggregate demand, which can be caused by factors such as increased government spending, increased consumer spending, or expansionary monetary policy. When demand for goods and services exceeds the available supply, prices tend to rise. Labor unions demanding higher wages or businesses charging higher prices can contribute to inflation, but these factors are generally secondary to changes in aggregate demand. Government raising taxes can actually decrease aggregate demand and reduce inflationary pressures.

The Underlying Cause of Inflation Is