Demand‑pull inflation is caused by
- an increase in aggregate demand to an equilibrium point beyond full employment.
- a decrease in short‑run aggregate supply to an equilibrium point beyond full employment.
- a decrease in short‑run aggregate supply to an equilibrium point below full employment.
- an increase in aggregate demand to an equilibrium point below full employment.

Cost‑push inflation is caused by
- an increase in aggregate demand to an equilibrium point beyond full employment.
- a decrease in short‑run aggregate supply to an equilibrium point beyond full employment.
- a decrease in short‑run aggregate supply to an equilibrium point below full employment.
- an increase in aggregate demand to an equilibrium point below full employment.

Question

lawrencemma2165 lawrencemma2165

30-04-2022
Social Studies

contestada

Demand‑pull inflation is caused by
- an increase in aggregate demand to an equilibrium point beyond full employment.
- a decrease in short‑run aggregate supply to an equilibrium point beyond full employment.
- a decrease in short‑run aggregate supply to an equilibrium point below full employment.
- an increase in aggregate demand to an equilibrium point below full employment.

Cost‑push inflation is caused by
- an increase in aggregate demand to an equilibrium point beyond full employment.
- a decrease in short‑run aggregate supply to an equilibrium point beyond full employment.
- a decrease in short‑run aggregate supply to an equilibrium point below full employment.
- an increase in aggregate demand to an equilibrium point below full employment.

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chloeroebuck2021 chloeroebuck2021 · Answer 1 · 2022-04-30T01:04:14+02:00

Answer:

- an increase in aggregate demand to an equilibrium point beyond full employment.

- a decrease in short run aggregate supply to an equilibrium point below full employment.

Explanation:

Changes to both aggregate demand and aggregate supply can lead to inflation.

Demand‑pull inflation occurs when the aggregate price level exceeds the full employment price level. This is caused by an increase in the aggregate demand curve beyond the full employment equilibrium.

Cost‑push inflation occurs when the short‑run aggregate supply curve decreases and reaches an equilibrium point below full employment. A decrease in the short‑run aggregate supply curve causes the equilibrium aggregate price level to increase.