Inflation is caused by ________.

Name: Inflation is caused by ________.
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Question

Quizplus · Accepted Answer

Rapid growth of money supply leads to inflation as it increases the money available in the economy, which can lead to an excess of demand over supply, driving prices up. A, C, and D are not direct causes of inflation. Unions may negotiate for higher wages, which can contribute to inflation, but they alone cannot cause inflation. Excess supply and low rates of capacity utilization typically result in deflation, not inflation.

Inflation Is Caused by ________