Demand inflation - PowerPoint PPT Presentation

Chapter 32 Inflation

Chapter 32 Inflation. What do we call the verb to “blow up a balloon” to “inflate” So what is inflation in the economy? →Brainstorm a definition Inflation = a general and persistent rise in prices. It is shown as a % 

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Demand inflation

Demand inflation. Demand Inflation. Demand inflation: the situation in which rises in the general price level are caused by excess spending or demand pressures. Generally, demand increases beyond the level of production available in the short term, putting pressure on prices to rise .

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