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 Form 4 online business studies lessons on inflation

Causes of structural inflation

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Answer Text:
causes of structural inflation:
-lack of skilled man power in a country.
-poor entrepreneurial culture where producers are not able to expand production.
-inflexibility of wages and prices in different sectors of the economy.
-slow and unstable rate of growth in exports.
-shortages in domestic supply of raw materials due
to exhaustion or restricted supply.