How are demand-pull and cost-push inflation reflected in terms of the AD-AS model?

What will be an ideal response?


Demand-pull inflation is reflected as a rightward shift of the AD curve that expands real GDP but also increases the price level. Cost-push inflation is reflected as a leftward shift of the AS curve which drives the price level up.

Economics

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The price that we observe in the market is

A) the law of demand. B) a substitute. C) the money price. D) the relative price.

Economics

The ability of a firm to maintain a price above the competitive level without losing all its customers to rival firms is termed as ________

a. competition b. marginal cost pricing c. allocative efficiency d. market power

Economics

One goal of rate-of-return regulation is the prevention of

A) free market entry. B) positive economic profits. C) poor quality service. D) environmental degradation.

Economics

A reduction in the amount of farmable land inside a nation would cause the:

A. long-run aggregate supply curve to shift to the right. B. long-run aggregate supply curve to shift to the left. C. short-run aggregate supply curve to shift to the right. D. aggregate demand curve to shift to the right.

Economics