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Essay: Inflation as a Result of High Demand

Inflation can be attributed to a number of causes. The most well-understood cause of inflation is the demand-pull in which the prices of products are forced to go up as a result of high demand. This happens in the case a government in a country resolves to deal with its economic crisis by printing excess money.

This leads to increased product prices in order to keep pace with the currency surplus. With excess money surplus, many people have access to more money and therefore can afford products at high prices. This means that increased product prices would not be a major problem because it will still be affordable.

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