In an inflationary economy the following conditions may be present:

Name: In an inflationary economy the following conditions may be present:
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In an inflationary economy, demand exceeds supply which puts pressure on prices to rise. As a result, the money supply is often increasing because the government and central bank are trying to stimulate the economy by providing more money. Overall, all three conditions of A, B, and C are present in an inflationary economy.

In an Inflationary Economy the Following Conditions May Be Present