An economy has been in a prolonged boom, causing the annual rate of price increases to rise from 2% to 4%, and then to 7%. Which of the following provides the most robust explanation for why this accelerating trend is unlikely to continue indefinitely?
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An economy has been in a prolonged boom, causing the annual rate of price increases to rise from 2% to 4%, and then to 7%. Which of the following provides the most robust explanation for why this accelerating trend is unlikely to continue indefinitely?
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