Question
Asked Oct 5, 2019

How do higher gasoline prices contribute to inflation?

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Expert Answer

Step 1

Inflation: It refers to the rise in the general price level of goods and services traded in the economy. As inflation rises it leads to a fall in purchasing power.

Step 2

With the rise in gasoline prices cost of transportation of goods and services rises, which cost is ultimately passed on to the consumers in the form of higher prices of goods and services. Also, gasoline is also ...

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