Explain why a high rate of inflation can persist well after the economic conditions which caused it do no longer exist
Question
Solution 1
High rates of inflation can persist even after the economic conditions which caused them no longer exist due to several reasons:
- Inertia and Expectations: Inflation often has a self-perpetuating nature. If people expect prices to rise, they may demand higher wages, and businesses may be more Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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