Monday, 9 March 2009

homeworkT.T

I wanted to write something about why there is so much homework and i cannot finish them, but then i decide i better do some homework, it is much helpful.

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.

1 comment:

  1. http://first-timer-busecon.blogspot.com/search/label/Cost%20push%20inflation

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