2. PRICEINCREASE
An expansion of the local
income raises the demand in
general
An expansion of the local
income raises the demand in
general
An increase in local income
raises imports
Increase in the price
of imports inflation
Increase in the price
of imports inflation

3. DECREASE AND
PURCHASING POWER
Inflation affects the
money
Affects people
who are on a fixed
income

4. UNEMPLOYMENT
The relationship between
unemployment and
inflation
Difficulty in
recruiting highly
skilled workers

5. MONETARY INFLATION
Increasing imports
and decreasing
exports.
Level of prices of
goods and
services

6. CONCLUSIONS AND RECOMMENDATIONS
Inflation in imports
That the government
encourage domestic
savings