Frenetic macroeconomic activity

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If resources are limited, wouldn't that give more scope for inflation? Would increasing demands against a fixed supply lead to price increases?

Inflation is thought of by Milton Friedman, not as a response to frenetic macroeconomic activity (the Phillips Curve), but "too much money chasing too few goods." It is about the devaluation of money.

Reference no: EM131901409

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