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Economics Revision Resources
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Price Stability and Inflation: Measurement, Causes & Consequences
Quick answer Price stability means low and predictable inflation rather than zero price changes. Inflation is usually measured by a consumer price index, and can arise from excess demand, rising costs or imported price shocks. Key ideas at a glance Inflation type Main cause Typical consequence Demand-pull Aggregate demand rises faster than productive capacity Higher general price level and possible output pressure Cost-push Input costs, taxes or exchange-rate effects raise co

Excel in Economics
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