Overheating

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term describing an economy that is expanding so rapidly that economists fear a rise in inflation. In an overheated economy, too much money is chasing too few goods, leading to price rises, and the productive capacity of a nation is usually nearing its limit.
The remedies in the United States are usually a tightening of the money supply by the Federal Reserve and curbs in federal government spending.
See also monetary policy; Optimum Capacity.

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Term describing an economy that is expanding so rapidly that economists fear a rise in inflation. In an overheated economy, too much money is chasing too few goods, leading to price rises, and the productive capacity of a nation is usually nearing its limit.

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Next:Overimprovement, Overissue, Overkill

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