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Unformatted text preview: (2) Tariff increases-raise price of imports (3) Farm price support programs (4) minimum wages (5) governments mandated health insurance (6) protectionism by non-tariff measures- 6 Outside inflation (1) Organization of Petroleum Exporting Countries OPEC oil prices 2 oil eruptions of raw materials supplies e.g. political unrest or strikes in Russia 3 Growing demand for raw materials from other countries 4 Bad weather- crop failures 5- Exchange Rate- weakening of the $- raises prices of imports 6- Inflation in the offer in other countries is transmitted though higher prices of imports 7 Growth inflation implies a tradeoff between economic growth and prices stability 1 more economic growth is desirable; it brings it the negative of inflation...
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