How can demand-pull inflation lead to cost-push inflation? A. Demand-pull inflat

Question

How can demand-pull inflation lead to cost-push inflation? A. Demand-pull inflation shifts the aggregate supply curve downward, which causes a temporary negative supply shock and hence O B. When demand-pull inflation occurs, unemployment is usually above the natural rate level, thus providing a greater chance for O C. When a demand-pull inflation produces higher inflation rates, it could prompt workers to demand higher wages in anticipation of 0 D. Although policymakers struggle with the distinction between demand-pull inflation and cost push inflation, these are unrelated and cost-push inflation. cost-push inflation to occur future higher inflation, creating cost-push inflation. one cannot lead to the other.

Explanation / Answer

Answer-D

the demand-pull inflation is different from cost-push inflation. The demand-pull inflation occurs when aggregate demand growing faster than aggregate supply while cost-push inflation occurs when supply-side factors.

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.