A decrease in the supply of goods causes inflation because people are willing to pay higher prices for scarce goods.
Supply-side economics
they rise
It loses purchasing power.
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
Demand Pull Inflation , where demand increased from supply
The causes of inflation include the rise in the supply and demand of a product or service and an increase in wages/salaries.
A decrease in the supply of goods causes inflation because people are willing to pay higher prices for scarce goods.
Supply-side economics
they rise
It loses purchasing power.
Inflation happens. When the supply of money goes up. The value of money goes down. And prices go up. Inflation is not the same as rising prices. Inflation causes rising prices.
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
Look here http://en.wikipedia.org/wiki/Inflation#Causes