Inflation indicators include upward shifts in wages and money supply (often 'M2') indicators

Question

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Inflation indicators often include upward shifts in wages, as increased wages can lead to higher spending and demand, potentially driving prices up. The money supply, particularly M2 which includes cash, checking deposits, and easily convertible near money, is also a key indicator, as an increase in the money supply can reduce the value of money, leading to inflation.

Inflation Indicators Include Upward Shifts in Wages and Money Supply