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Module 1: Types of inflation

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Factors Contributing to Inflation

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Economics - Factors contributing to price stability

Factors contributing to price stability

DEMAND FACTORS
SUPPLY FACTORS

Increased personal income tax rates
Improved productivity

Lower interest rates
Low inflation overseas

Lower levels of government spending
Appreciation of the currency

Reduced consumer confidence
A reduction in real wages

Appreciation of the currency
Reduced inflationary expectations

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