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OpenStudy (anonymous):
from the theory of demand pull inflation what happens when market prices exceed salary allocation?
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OpenStudy (anonymous):
when prices in the market exceed salary allocation then demand pull inflation decreases. ( we can use the concept:- price level and demand are inversely correlated)
OpenStudy (anonymous):
and here in case of salary allocation ..if market prices are more than one's income capacity then he will be buying less and demanding less. this leads to decrease in demand pull inflation.
OpenStudy (anonymous):
mamta i go with ur concept...
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