Demand pull inflation, which is mainly caused by an increases in aggregate demand. The factors are:
Increases in
- income
- expected income
- wealth
- population
- confidence
- goverment spending
- productivity
- forgein income
And a decreases in interest rate and exchange rate.
Cost push inflation is mainly caused by an decrease in aggregate supply. The factors are
An Increase in
- cost
- wage
And an decrease in productivity of product markets.
Ok, now i am going to learn all the diagrams>.<. Good night to everyone.
http://first-timer-busecon.blogspot.com/search/label/Cost%20push%20inflation
ReplyDelete