Little details to help understand macroeconomics

why does inflation happen?

demand is high but supply is low, high production costs make companies raise their prices to afford it, and built in inflation

built in inflation

wage workers see prices go up and they demand higher paychecks which leads to companies raising their prices to pay their workers

housing, cars, and eletronics raise their prices but why?

demand is high and supply is low so they want consumers to not buy too much leading to inflation

who runs fiscal policy?

the national government, president and congress

who runs monetary policy

a country’s central bank like the federal reserve