How changes in other economies affect inflation in the UK.

Cards (5)

  • Foreign economies can cause demand pull inflation as an increase in growth of foreign economies means that there will be a increase in demand for UK goods and services
  • What will an increase in foreign economies do to demand for UK goods and services?
    increases
  • What types of inflation can foreign economies cause?
    demand pull and cost push
  • Foreign economies can cause cost push inflation as an increase growth of foreign economies will lead to an increase in demand for commodities
  • What will increase in growth of foreign economies do to commodity prices?
    increase