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What is Economic development theory?
Economic development theories and models seek to describe and predict how the:
• Economies may develop or not over time in excess
• Barriers to growth can be known and overcome
• Government can encourage or start, accelerate and sustain growth with suitable development polices.
QUESTION (a) Use graphical methods to distinguish between cost push and demand pull inflation. (b) Explain how a budget deficit of the government can cause inflation. (c)
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