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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is the Conflict between Economic Growth and Inflation [And the Balance of Payments]

Author: eric_galvao



Answer:

-Very Fast Growing Economy means the Prices will Increase from Demand Pull Inflation. This makes Inflation higher than Wanted. And higher prices Exports means there will be Less [And more Imports] -Keeping Inflation low can Prevent Growth. Interest Rates [eg] being kept High will discourage Spending meaning Economic Growth Tanks


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