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olga55 [171]
3 years ago
5

Which explanation do you think gives the most reasonable cause of inflation

History
1 answer:
lakkis [162]3 years ago
6 0

Answer:

Inflation means there is a sustained increase in the price level. The main causes of inflation are either excess aggregate demand (AD) (economic growth too fast) or cost push factors (supply-side factors).

Explanation:

There are two main causes of inflation: Demand-pull and Cost-push. Both are responsible for a general rise in prices in an economy. But they work differently. Demand-pull conditions occur when demand from consumers pulls prices up.

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