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Inflation and Extensive Way of Economic Growth |
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Inflation and Extensive Way of Economic Growth |
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product c s in the process of society development, the productive demand increased for in-process goods can be satisfied by the higher price because it is easier to be compensated than that of consumptive demand for final good. when economy system expands its scale, the balance of supply and demand of aggregate social products and its internal structure is destroyed. that is, supply less demand. the prices rise. the consumptive demand for final good can decease for higher price. the new balance of supply and demand of aggregate social products is formed. because every department must expend other departments in-process goods in its production process, the price rising of a, b and c would lead to costs increase for product a,b and c. the demand for product a, b and c would increase 27.78,46.67 and 81.11 individually because of the extensive expanded reproduction. in this case, not only the expanded reproduction would happen in department a,but also in department b and c once again. as the process of production goes on, the aggregate social product and the structural supply and demand would tend to be in a state of balance, the price would tend to stability and the final equilibrium would be formed completely. here is the input-output table after the equilibrium. |
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