demand pull inflation results from an increase in demandfactors of increase 1) increase in money supply2) increase in government purchases3) increase in price level in rest of world cost push inflation cost push inflation results from decrease in supply factors of decrease1) increase in wage rate...
excess demand in the economy leading to an increase in the price level as there is an increase in aggregate demand but no increase in aggregate supply - AD curve shifts right Causes of "demand-pull inflation" Increase in any of the 4 components of AD;1. Consumption - Consumer spending inc...
This results in an imbalance between the supply and demand for money Hyperinflation is often associated with wars or their aftermath, political or social upheavals, or other crises. Inflation/Deflation/Disinflation Price increase/Price drops/Inflation rate drops ...
People believe that prices will increase, leading to increases in demand, resulting in demand pull inflation. Monetary Policy Changing interest rates or the quantity of credit and money to influence the level of economic activity. Official Cash Rate An interest rate set by the Reserve Bank to imp...