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Elements of inflation include demand-pull factors, where increased consumer demand drives prices up; cost-push factors, where rising production costs lead to higher prices; and built-in inflation, which relates to adaptive expectations where workers demand higher wages, leading to increased costs for businesses. Additionally, monetary policy, such as an increase in the money supply, can also contribute to inflation. Overall, inflation is influenced by a complex interplay of economic factors and policies.

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3d ago

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