Dating on demad

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Let's explore each of these types of inflation in more detail.Demand-pull inflation results when prices rise because aggregate demand in an economy is greater than aggregate supply.Increases in the money supply, increases in government spending and foreign demand and growth are a few things that cause this supply and demand imbalance; ultimately pulling prices higher.For example, if inflation is 3%, the pack of chips that cost you will cost you .09 next year.Inflation can result and increase because of the following four main factors: Cost-push inflation is most closely tied to number two, the supply of goods going down.

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