GDP

If the GDP is growing too fast, it means primarily that consumers are spending a lot of money (because consumer spending makes up the majority of the GDP). As you have already learned, when a lot of people with a lot of money are trying to buy the same goods, this typically re­sults in inflation. (Recall that we discussed how on Valentine's Day roses are more expensive because more people want roses on that day). Things, in general, become more expensive when too many consumers have money (either money from their jobs or money they have bor­rowed) to buy these items.