Demand-pull inflation occurs when there are increases in per-unit costs of production. there is a negative price gap. prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output. a. there is a negative GDP gap. b. A negative GDP gap is associated with demand-pull inflation. international inflation. cost-push inflation. output inflation. c. A positive GDP gap is associated with demand-pull inflation. output inflation. cost-push inflation. international inflation. Next
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