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  • How a growing economy lowers prices?

    Now I understand of course supply and demand, and that as an economy is more productive prices decrease. However, will not other prices have to increase as well if the money supply is constant? When talking about rising prices, the argument is that prices cannot all rise (thus causing a net increase...
    Posted to Economics Questions (Forum) by tcostel on Fri, Aug 5 2011
  • Economic Growth=inflation (so says my economics professor)

    My economics professor keeps saying economic growth causes price inflation. Something about this does not make sense to me. If the economy is more productive, then the supply of goods is greater, so would not prices (assuming the money supply is stable) actually drop? He would argue that it is aggregate...
    Posted to Economics Questions (Forum) by tcostel on Thu, Mar 17 2011
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