Describe the output effects of Inflation
Describe the output effects of Inflation?
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A. Cost-push inflation, where resource prices increases suddenly, it would cause both output as well as employment to decline. Real income falls.
B. Mild inflation comprises uncertain property. It may be a vigorous derivative of a prosperous economy, or it may have an adverse collision on real income.
C. Danger of creeping inflation turning into hyperinflation, which can cause speculation, reckless spending, and more inflation.
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