Causes of inflation: Demand pull and cost push
- Created by: Jade
- Created on: 13-12-12 13:20
Other questions in this quiz
2. When the economy is producing at or near its productive capacity, increases in aggregate demand are unlikely to push up the price level.
- False
- True
3. What is cost push inflation?
- Cost push inflation is increases in the price level caused by increases in aggregate supply
- Cost push inflation is increases in the price level caused by increases in the costs of production
- Cost push inflation is increases in the price level caused by increases in aggregate demand
4. What is demand pull inflation?
- Demand pull inflation is increases in the price level caused by increasing in consumption and investment
- Demand pull inflation is increases in the price level caused by increases in aggregate demand
- Demand pull inflation is increases in the price level caused by increases in the costs of production
5. Demand pull inflation occurs when aggregate demand is increasing at a slower rate than aggregate supply
- False
- True
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