Currencies Cycle Inflation/deflation
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+The+money+wage+rate+rises+in+line+with+the+expected+rise+in+the+price+level..jpg)
+The+price+level+rises%2C+real+GDP+increases%2C+and+an+inflationary+gap+arises..jpg)
+The+combination+of+a+rising+price+level+and+a+decreasing+real+GDP+is+called+stagflation..jpg)
+In+the+long+run%2C+inflation+occurs+if+the+quantity+of+money+grows+faster+than+potential+GDP..jpg)
+Money+Wage+Rate+Response.jpg)
+Inflation+and+the+Business+Cycle.jpg)

+Figure+29.5(b)+illustrates+an+aggregate+demand+response..jpg)
+Initial+Effect+of+a+Decrease+in+Aggregate+Supply.+Figure+29.5(a)+illustrates+the+start+of+cost-push+inflation..jpg)
+A+Cost-Push+Inflation+Process.jpg)
+Expected+Inflation.jpg)

+Aggregate+Demand+Response.jpg)
















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+Cost-Push+Inflation.jpg)


































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