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30 July, 03:56

The spiral usually begins with an increase in demand. what is the direct effect of this increase?

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  1. 30 July, 04:22
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    In demand-pull inflation, the spiral starts with an increase in the demand which then causes the increase in prices of goods. Often this scenario is based on Keynesian's theory proposing that an increase in demand is due to the rise of employment rate.
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