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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can high Consumer Spending, or High Demand for Exports lead to Demand pull Inflation

Author: eric_galvao



Answer:

-Higher Spending, perhaps from High Confidence in their Employment [Low Unemployment] or Low Interest rates will ecnourage Spending and Borrowing. AD Shifts causing Inflation -Foreign Demand for Exports can also cause by Rapid Economic growth in other Nations [AD still shifts]


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