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If people expect inflation, they are more inclined to spend than save money which will lose its value. A surge in demand will cause an an increase in prices (because demand exceeds supply) and voila! Inflation.

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Could demand-pull inflation occur before an economy was producing at capacity and how?

Yes, demand-pull inflation can occur before an economy reaches full capacity if there is a sudden increase in aggregate demand that outpaces supply. This can happen due to factors such as increased consumer spending, government stimulus, or investment booms. Even if there is slack in the economy, the heightened demand can push prices upward as businesses respond to the increased demand by raising prices, anticipating future shortages. Thus, demand-pull inflation can emerge even when there are unused resources available.


When do inflation occur?

When goods or services in general cost less in the deflated currency than previously.


How does Krugman feel about inflation?

Paul Krugman, a columnist with The New York Times, has published an article that promotes the view that inflation should be allowed to occur. High inflation, he states, promotes spending over saving, and reduces the real value of any debts.


What is pricing power inflation?

Pricing Power InflationPricing power inflation is more often called administered price inflation. This type of inflation occurs when the business houses and industries decide to increase the prices of their respective goods and services to increase their profit margins. Pricing power inflation does not occur at the time of financial crises and economic depression or when there is a downturn in the economy. This type of inflation is also called oligopolistic inflation because oligopolies have the power of pricing their goods and services at whatever levels they want.


What is diflation?

Deflation is decrease in general price level of services and goods. Deflation occur when inflation rate is 0%

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How does making the readers astray help in building up tension in stories?

If the reader expects one thing to happen, and other things begin to occur that they didn't think about, that will build up their tension and make them want to read more to see what you're going to have happen next.


Why did inflation occur after ww1?

A low supply of goos and a widespread demand


Why did inflation occur after the war?

a low supply of goods and widespread demand


When is gastric infaltion likely to occur?

Gastric inflation is likely to occur during procedures that involve the introduction of air or gas into the stomach, such as during endoscopy or when a patient is placed on positive pressure ventilation. It can also happen in instances of overeating or rapid consumption of food and beverages, leading to excessive swallowing of air. Additionally, certain medical conditions that affect gastric movement or function can contribute to gastric inflation.


How do you explain the who what when why how?

Who was involved, What happened, When did it occur, Why did it occur, and How did it happen.


Could demand-pull inflation occur before an economy was producing at capacity and how?

Yes, demand-pull inflation can occur before an economy reaches full capacity if there is a sudden increase in aggregate demand that outpaces supply. This can happen due to factors such as increased consumer spending, government stimulus, or investment booms. Even if there is slack in the economy, the heightened demand can push prices upward as businesses respond to the increased demand by raising prices, anticipating future shortages. Thus, demand-pull inflation can emerge even when there are unused resources available.


What is the formal word for the word happen?

"Occur" would work, however, happen is appropriate in most situations.


When do inflation occur?

When goods or services in general cost less in the deflated currency than previously.


What is a synonym for happen?

Occur.


What is befell?

To happen or occur


What has the author James Bullard written?

James Bullard has written: 'Did the great inflation occur despite policymaker commitment to a Taylor rule?' -- subject(s): Industrial productivity, Inflation (Finance)