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How does inflation affect the GDP 2024?

Ava Patel | 2023-05-07 11:15:06 | page views：1423
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Lucas Patel

Works at the World Food Programme, Lives in Rome, Italy.
Increased production leads to a lower unemployment rate, further increasing demand. Increased wages lead to higher demand as consumers spend more freely. This leads to higher GDP combined with inflation. Scenario 2 implies there is no increased demand from consumers, but that prices are higher.
2023-05-15 11:15:06
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Oliver Brown

QuesHub.com delivers expert answers and knowledge to you.
Increased production leads to a lower unemployment rate, further increasing demand. Increased wages lead to higher demand as consumers spend more freely. This leads to higher GDP combined with inflation. Scenario 2 implies there is no increased demand from consumers, but that prices are higher.
Why does inflation increase with GDP growth? | Investopedia
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