Money growth refers to the increase in the total supply of money in an economy over time. Inflation is the sustained increase in the general price level of goods and services in an economy.
Imagine a balloon being inflated with air. As more air is pumped into the balloon, it expands and becomes bigger. Similarly, when there is an increase in the supply of money, prices tend to rise, just like the expanding balloon.
Aggregate Demand: The total demand for goods and services in an economy at a given price level.
Hyperinflation: An extremely high and typically accelerating inflation.
Monetary Policy: Actions taken by a central bank to manage and control the money supply and interest rates in order to influence economic activity.
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