The idea that a monopoly will only cause a one time increase in price and not a continuing inflation is a microeconomic concept that Notre Dame football as long as there is unity there is strength shirt a constant demand and cost of production. With excess inflation nominal demand and cost continue to increase. This is because the second ingredient in excess inflation is unemployment getting so low that it causes an increase in worker’s bargaining power. With unemployment getting low, workers can demand wage increases. This increases cost and cuts into the employers excess profits, also known as economic rents.