Скачать или смотреть Demand Pull and Cost Push Inflation

Demand-Pull Inflation vs. Cost-Push Inflation:
Demand-pull inflation occurs when aggregate demand in the economy exceeds the available supply of goods and services. This leads to higher prices as consumers bid up the prices of limited goods. Causes of demand-pull inflation include increased consumer spending, government spending, money supply growth, and rising exports.
In contrast, cost-push inflation is driven by increases in the costs of production, such as higher wages or raw material prices. This reduces the overall supply of goods, forcing firms to raise prices to maintain profit margins. Examples of cost-push inflation include rising oil/energy prices and supply chain disruptions.
While demand-pull inflation can boost economic growth and employment in the short-run, it can also lead to a fall in the real value of money and a lower standard of living. Cost-push inflation, on the other hand, tends to result in both higher inflation and lower economic growth, making it more difficult for policymakers to address.
Governments and central banks can use a variety of tools to combat both types of inflation, such as adjusting interest rates, controlling the money supply, and implementing supply-side reforms. However, cost-push inflation is generally more challenging to control without significantly impacting economic output.
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