This phenomenon may be demand-pull or cost-push and indexation is a method used to mitigate its costs.
This phenomenon may be demand-pull or cost-push and indexation is a method used to mitigate its costs. Menu costs and shoe-leather costs are negative consequences of this phenomenon. The. The Phillips curve posits a tradeoff between unemployment and this phenomenon, and it is more likely to occur at higher levels during positive output gaps. The monetary transmission mechanism is claimed to explain how phenomenon is caused by increases in the money supply. For 10 points, name this phenomenon in which average prices in an economy rise.
This phenomenon may be demand-pull or cost-push and indexation is a method used to mitigate its costs.
{Inflation}