Not only are there more dollars, but each does more work.

Then old enterprises are resumed and new ones are undertaken.

The purchase of materials in larger quantities causes a rapid rise in the prices of many raw materials and of all kinds of industrial equipment.

The less efficient laborers and others that have been out of work, begin to find employment, and then, more tardily, wages begin to rise.

As a result, the costs of many products begin to rise rapidly.