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Economists Agree That Increases in the Money-Supply Growth Rate Increase

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Essay

Economists agree that increases in the money-supply growth rate increase inflation and that inflation is undesirable. So why have there been hyperinflations and how have they been ended?


Definitions:

Aggregate Expenditure

Aggregate expenditure is the total amount spent on goods and services in an economy at a given overall price level and in a given time period.

Current Production

The total value of all goods and services produced within a given period by an economy.

Real Gross Domestic Product

Real Gross Domestic Product is another term for Real GDP, indicating the value of all goods and services produced by an economy adjusted for inflation or deflation.

Inventories

The stockpiles or amounts of goods being held by a business to fulfil future sales or production needs.

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