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Inflation is generalized increase of prices of goods and services in an economy, along with a corresponding fall in the purchasing value of money. The rate of inflation refers to the increase of the price of goods and services over time.

1 vote
3 answers
2k views

Why do increase in firms profit margins cause cost push inflation?

I get what profit margins and cost-push inflation are, but don't see how increase in marginal profit causes cost-push inflation? Also, how does increase in money supply cause cost-push inflation? …
tsp216's user avatar
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1 vote
0 answers
115 views

Why does a reduction in regional differences in unemployment shift the Phillips curve?

I don't see how either scenario would affect the expectation for inflation (in this question it would seem to be a deflationary expectation) to result in a leftwards shift in the SRPC. …
tsp216's user avatar
  • 675