When people have more money and eagerly spend it, this increases . This leads to inflation. When the prices of raw materials or labor increase, this causes an increase in , resulting in for consumers.

Answers

Answer 1

Answer: 1. Demand

2. Demand-pull

3. cost of production

4. Higher prices

Explanation: Just took test

Answer 2

When the prices of raw materials or labor increase, this causes an increase in supply-demand the cost of production, resulting in higher prices lower prices, and increased demand for consumers.

Does inflation go up when people spend more?

Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.

How is inflation affecting spending?

Inflation raises prices, lowering your purchasing power. Inflation also lowers the values of pensions, savings, and Treasury notes. Assets such as real estate and collectibles usually keep up with inflation. Variable interest rates on loans increase during inflation.

Learn more about inflation here: brainly.com/question/8149429

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