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To: Toddsterpatriot
A booming economy produces more output.That tends to be deflationary.

Wrong. Economic growth always produces some inflation. Why? Because if consumers are working more and making more money, they are spending more.

That is Economics 101.

49 posted on 12/05/2024 2:25:52 PM PST by Kazan
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To: Kazan
Because if consumers are working more and making more money, they are spending more.

If they're working more, they're producing more.

That's why inflation came down faster than expected after Reagan's recession ended. Output expanded faster than the money supply.

64 posted on 12/05/2024 10:08:43 PM PST by Toddsterpatriot (TANSTAAFL)
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