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Cost-push, and demand-pull. Well that makes me feel a little better. Though, I must admit, I'm still a little troubled — probably since I'm no economist. But why does the cause of the inflation change the effect? --t "There is no don mcgovern pain in death; it only hurts to die." -Quicksand don mcgovern [ don mcgovern ...reply just to this | comment on the story... | next new ] 138. Re: Ivory towers by Megabazus at Fri 2 Sep 5:22pmscore of 1 in reply to comment 137 I'm glad you asked because I don't think I made this sufficiently clear. When demand-pull inflation is in effect, the primary cause is low unemployment. This means fewer people living off social welfare programs, and more production in the economy. Greater competition for labor between firms during these periods of low unemployment is what keeps wages rising along with inflation.
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