According to the quantity theory of money,the primary cause of inflation is an increase in real GDP.

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According to the quantity theory of money, the primary cause of inflation is an increase in the money supply, not an increase in real GDP. The theory states that an increase in the money supply leads to an increase in prices, as there is more money chasing the same amount of goods and services, resulting in inflation. Real GDP affects inflation indirectly, as the level of economic activity can influence the money supply through changes in bank lending and borrowing behavior.

According to the Quantity Theory of Money,the Primary Cause of Inflation