What are the main causes of inflation, and how do they impact the economy? Explore the relationship between inflation and factors such as changes in aggregate demand, supply shocks, and monetary policy. Discuss the potential consequences of high or persistent inflation on purchasing power, savings, and economic stability.

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The detailed answer for the above question is provided below Introduction Inflation defined as a sustained increase in the general price level of goods and services is a significant macroeconomic phen... View the full answer