No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Essential Questions

What is the difference between demand-pull inflation and cost-push inflation?

Posted on April 16, 2014 at 10:10 AM

Demand-pull inflation is caused by an increase in aggregate demand. This means that buyers are pulling up the general price level of goods and services within an economy.

Cost-push inflation is caused by a decrease in short-run aggregate supply. This means that an increase in production costs (resource prices) have caused an increase in the general price level.

AP Macroeconomics Unit 2 Measuring Economic Performance

Categories: AP Macroeconomics, Macro Unit 2 Measuring Economic Performance

Post a Comment


Oops, you forgot something.


The words you entered did not match the given text. Please try again.

You must be a member to comment on this page. Sign In or Register