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Inflation deflation

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the economic crisis

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Inflation deflation

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  7. 7.  Energy crises  Increase in population  Decrease in supply  Marketing and new technology  Customs and traditions  Backward mean of production 7
  8. 8. A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials. 8
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  10. 10.  Monopoly  Natural disasters › Shortage of resources  Component costs › increase in the prices of raw material (natural resources).  Rising labor costs › creating labor shortages  Higher indirect taxes imposed by the government › a rise in the duty on alcohol, cigarettes and petrol/diesel. 10
  11. 11.  A fall in the exchange rate › this can cause cost push inflation because it normally leads to an increase in the prices of imported products.  Loose Govt. control  Surplus Employment.  Imports 11
  12. 12. 12 Amna Abdul

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