What are the causes and consequences ? What system will fail first?
In: Economics
Economy overheating typically means inflation is increasing. During a wartime economy, you focus more of your production efforts on making bullets and guns instead of bread and butter. This means the people who make bread and butter have a harder time competing for labor and there is less food to go around. Since there is less food but you’re still trying to feed the same amount of people there is a shortage which increases the price of food (everything)
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