Differentiate between “demand-pull” and “cost-push” inflation in the basic aggregate demand and aggregate supply model.
What will be an ideal response?
Demand-pull inflation occurs when an increase in aggregate demand pulls up the price level. Graphically, the demand curve is shifting rightward in the intermediate or classical range of the aggregate supply curve. Cost-push inflation is a result of aggregate supply decreasing relative to aggregate demand. Graphically, the aggregate supply curve would be shifting leftward, intersecting the aggregate demand curve at a higher level of prices.
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The largest component of state and local education spending is for
a. elementary and secondary education b. colleges and universities c. libraries d. research e. police protection
One difference between a traveler's check and a demand deposit is that: a. a traveler's check is accepted almost as widely as currency, while a demand deposit has to be converted into cash before making transactions. b. a demand deposit is accepted almost as widely as currency, while a traveler's check has to be converted into cash before making transactions. c. a traveler's check has a longer
expiration date than a demand deposit. d. a demand deposit has a longer expiration date than a traveler's check.