Causes of Demand Pull Inflation Flashcards
1
Q
R
A
Reduction in indirect taxation
2
Q
D
A
Depreciation in the exchange rate will increase the price of imports and reduce the foreign price of uk exports
3
Q
R2
A
Rising consumer confidence and an increase win the rate of growth of house prices can cause demand to rise
4
Q
F
A
Faster rates of growth in other countries can provide a boost to export which is an injection of AD into circular flow
5
Q
what is demand pull inflation
A
the upward pressure on prices that follows a shortage in supply
5
Q
what is demand pull inflation
A
the upward pressure on prices that follows a shortage in supply
