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Inflation is a general rise in the level of prices; however, our measures of inflation collect price information on thousands of goods, and firms set
Inflation is a general rise in the level of prices; however, our measures of inflation collect price information on thousands of goods, and firms set these prices. Most firms set prices as a mark-up over costs: P = (W/A) x (1 + z). Use this equation to explain the factors that influence inflation
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