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The phenomenon of an overheating economy is a central theme in E304. When GDP grows too quickly, it often leads to inflationary pressures. As businesses compete for a limited pool of labor and raw materials, prices rise. Central banks typically respond to this "heat" by raising interest rates to cool down spending. However, the timing of these interventions is critical. If a government or central bank waits too long, the economy may suffer from hyperinflation; if they act too aggressively, they risk triggering a recession. The balance between maintaining growth and controlling heat is the defining challenge of modern fiscal and monetary policy. : A personal trainer and lifestyle coach who