Buy custom inflation and its impacts on Vietnam
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| Topic: |
Business
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| Number of pages / Number of words: |
8 / 2135 |
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They are willing to buy commodities and purchase services and hence, they are ready to spend more money on their need. Because demand is high and supply is limited, prices are bid up, resulting in higher inflation. The three most likely causes of an increase in aggregate demand will also tend to increase inflation: increases in the money supply, increases in government purchases and increases in the price level in the rest of the world (Cost-push inflation vs...
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Demand-pull inflation, Mike Moffat, About.com: economics).
The second cause is called “cost-push†inflation. Demands are escalating so quickly that vendors are incapable to meet such a high demand rate. To overcome this, they need to raise their number of workers, number of machines, etc. Therefore, they must increase their prices of goods to maintain their profit...
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