What are the two types of inflation

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What are the two types of inflation? Of these two, which is one is usually the cause behind rising prices? What empirical evidence can be provided for the previous conclusion? Why would government expenditures (spending) into the circular flow not generally lead to inflationary pressures? Is there a trade-off between inflation and unemployment? Why or why not? What are the orthodox and heterodox assumptions behind the equation of exchange (MV = PY) and the consequences and outcomes of these assumptions? (Your answer should also include the direction of causation.) Of the two approaches regarding the equation of exchange, which is endogenous money and which is exogenous money? Explain what this means. What comprises the actual money supply and what does this have to do with inflation? What entity actually creates the majority of the money supply?

Reference no: EM131165525

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