2.4 INFLATION

Question 1

what is inflation

Answer 1

rate at which the general level of prices for goods and services rises, decreasing purchasing power.

Question 2

what demand pull inflation

Answer 2

occurs when the overall demand for goods and services exceeds supply, leading to an increase in prices

Question 3

whats cost push inflation

Answer 3

occurs when the overall prices of goods and services rise due to increases in the costs of production

Question 4

causes of demand pull inflation

Answer 4

Increased Consumer Spending
Government Spending
Monetary Policy

Question 5

causes of cost push inflation

Answer 5

Rising Raw Material Costs
Wage Increases
Supply Chain Disruptions