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3 May, 11:30

How does demand-pull inflation differ from cost-push inflation?

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  1. 3 May, 11:35
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    Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve. This is commonly described as "too much money chasing too few goods".
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