The most formal attire for a wedding is white tie and if you receive a wedding invitation in the mail that says white tie is required, you're pretty restricted as to what you should and should not wear.
Figure 11.5 Inflation and Money Growth in the Long Run examines annual growth rates based on observing the money supply and the price level at five-year intervals. The first observation is the annual growth rate for the period starting in January 1959 and ending in January 1964.omparing these two figures, you can see that the relationship between money growth and inflation is much tighter when we examine five-year periods, as in Figure 11.5 Inflation and Money Growth in the Long Run , rather than the monthly changes in Figure 11.4 Inflation and Money Growth in the Short Run .
A sustained rise in prices is known as inflation. A large rise in prices / higher inflation rate is often caused by economic growth. However, there are also occasions, when we can get inflation despite weak or negative economic growth. Typically, higher inflation is caused by strong economic growth. If Aggregate Demand in an economy expanded faster than aggregate supply, we would expect to see a higher inflation rate. If demand is rising faster than supply this suggests that economic growth is higher than the long run sustainable rate of growth.