chloe417
contestada


What is the difference in demand-pull inflation and cost-push inflation?
Demand-pull inflation needs a constant increase in the quantity of money
while cost-push inflation needs increases in both fiscal and monetary
policy
Demand-pull inflation needs an increase in both fiscal and monetary policy
while cost-push inflation needs a constant increase in the quantity of
money.
Demand-pull inflation starts with some activity that decreases aggregate
demand while cost-push inflation starts with an event that increases
aggregate supply
Demand-pull inflation starts with some activity that increases aggregate
demand while cost-push inflation starts with an event that decreases
aggregate supply

Respuesta :

Answer:

Demand-pull inflation starts with some activity that increases aggregate demand while cost-push inflation starts with an event that decreases

aggregate supply

Explanation:

Sustained increase in the general price levels of goods over a period of time is called inflation. With the rise in general price level, the goods and services bought by  a unit of currency decreases.

Analysis of Inflation have revealed that it is caused by either supply side or both the factors. Demand side factors result in demand-pull inflation while supply side factors lead to cost push inflation.  

The demand pull inflation is caused when the total demand is more that the total supply in the economy.  The cost push inflation is when the the demand is same but the supply of goods and services fall due to some external factors.

Otras preguntas