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What is the relationship between real growth and inflationSolut

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What is the relationship between real growth and inflation?
Solution
Inflation
Inflation can mean either an increase in the money supply
or an increase in price levels. Generally, when we hear
about inflation, we are hearing about a rise in prices
compared to some benchmark. If the money supply has
been increased, this will usually manifest itself in higher
price levels - it is simply a matter of time.
GDP(Growth)
Gross domestic product(growth) in the United States
represents the total aggregate output of the U.S. economy.
It is important to keep in mind that the GDP figures as
reported to investors are already adjusted for inflation.
The relationship between inflation and economic output
(GDP) plays out like a very delicate dance. For stock
market investors, annual growth in the GDP is vital. If
overall economic output is declining or merely holding

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What is the relationship between real growth and inflation? Solution Inflation Inflation can mean either an increase in the money supply or an increase in price levels. Generally, when we hear about inflation, we are hearing about a rise in prices compared to some benchmark. If the money supply has been increased, this will usually manifest itself in higher price levels - it is simply a matter of time. GDP(Growth) Gross domestic product(growth) in the United States represents the total aggregate output of the U.S. economy. It is important to keep in mind that the GDP figures as reported to i ...
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