02 Jun Question Respond to the following questions on inflation:
Question
Respond to the following questions on inflation:
How are people worse off when the price level rises as fast as their incomes?
How can demand-pull inflation occur before an economy is producing at full capacity?
Post your primary response. Be sure to review your writing for grammar and spelling before posting.
Read any postings already provided by your instructor or fellow students. Read and respond to the conclusions drawn by at least two of your classmates.
Remember to read the feedback to your own major postings and reply to it throughout the module.
Evaluation criteria
Read the SBT Discussion Rubric to understand expectations for this assignment. Ensure that:
Effect of inflation on consumers, in spite of constant real incomes, is accurately identified and described.
Demand-pull inflation is accurately analyzed based on the relationship between demand, incomes, and production.
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