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Sagot :
Yes, Rapid economic growth cause inflation. Since the growth rate of the price level is just another term for the inflation rate, the inflation rate must fall.
The inflation refers to a general increase in the price of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.
An increase in the rate of economic growth means more goods for money to chase which puts downward pressure on the inflation rate. If the economy grows faster than it has capacity to, price will rise quickly and things become more expensive.
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