Economic expansions might lead to inflation because an expansion leads to

Question

Quizplus · Accepted Answer

Economic expansions typically result in a decrease in the unemployment rate as businesses are growing and hiring more employees. With fewer people unemployed, there is more competition for workers, which can lead to an increase in wages. As wages increase, businesses need to charge more for their products and services to cover the higher labor costs, leading to inflation.

Economic Expansions Might Lead to Inflation Because an Expansion Leads