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MissTica
3 years ago
15

According to the demand-pull theory, inflation is caused by:

Business
1 answer:
Aliun [14]3 years ago
6 0

Answer:

Understanding Demand-Pull Inflation

Demand-pull inflation is a tenet of Keynesian economics that describes the effects of an imbalance in aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up. This is the most common cause of inflation.

Explanation:

hope it helps you

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The Solow model which is a neoclassical framework focuses on long term Economics and does indeed speak to the convergence of the Real GDPs of Developed Countries with that of Developing countries.

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For convergence to happen, the conditions in A, B and D are preferable as they can indeed bring about the said convergence.

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