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11779549
Consequences of Inflation
Description
Mind Map on Consequences of Inflation, created by 17Y6C32 KOH HUI WEN on 17/12/2017.
Mind Map by
17Y6C32 KOH HUI WEN
, updated more than 1 year ago
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Created by
17Y6C32 KOH HUI WEN
almost 7 years ago
19
1
0
Resource summary
Consequences of Inflation
DD-pull inflation
Caused by ↑ AD
Low & stable inflation
↑ EG, ↑ Emp
↑ Mat SOL
↑ FDI
↑ PG
BOP improves
High inflation
↓ FDI
↓ PG
BOP worsens
Cost-push inflation
Caused by ↓ SRAS
↓ EG, ↓ Emp
↓ Mat SOL
↑ Unit COP
↓ FDI
BOP worsens
↓ PG
Relatively cheaper M
↓ (X-M)
BOP worsens
Wage Px spiral
Worsen inflation
Worsen Y inequality
Strong vs weak trade unions
Fixed vs variable Y earners
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