What are the causes of inflation? Discuss how they contribute to inflation of prices.© BrainMass Inc. brainmass.com October 9, 2019, 5:47 pm ad1c9bdddf
The principal causes of inflation are:
- Excessive demand - 'too much money chasing too few goods'. If demand is growing faster than the level of supply, then prices will increase. The costs of inflation include:
- Uncertainty - if inflation keeps varying, then firms may ...
Lists 4 principal causes of inflation in 181 words of explanation.