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3 years ago

Demand-pull inflation happens when the demand for goods

Computers and Technology

2 answers:

satela [25.4K]3 years ago

4 0

Answer

Demand-pull inflation happens when the demand for goods strongly outweighs the aggregate supply making prices to go up.

Explanation

A demand pull inflation for a product happens when aggregate demand in an economy outpaces aggregate supply. The inflation in this case will rise with increase in real gross domestic product and fall of unemployment as the economy moves along the Philips curve. This situation can be described as "too much money chasing too few goods”

pav-90 [236]3 years ago

4 0

Answer:

<em>"Demand pull inflation occurs when demand for goods and services increases more quickly than the productive capacity."</em>

Further Explanation:

Inflation occurs when an increase in overall price within an economy. Demand pull inflation occurs when consumer demand is increased and corresponding seller raise the prices on goods. Demand pull inflation have impact on business, households, foreign buyers and governments.

The causes of demand pull inflation include:

Rising real wages
Lower interest rates
Devaluation
The rise in house prices
Cut in income tax rates
Rise in consumer confidence

The below figure shows that the increase in demand for goods and services from D0 to D1 in short run:

Learn more:

1. A company that allows you to license software monthly to use online is an example of ? brainly.com/question/10410011

2. Prediction accuracy of a neural network depends on _______________ and ______________. brainly.com/question/10599832

3. The shape of our galaxy was determined ‘on the inside looking out' by surveying the milky way using ____________ telescopes. brainly.com/question/7866623

4. List 3 characteristics of the ideal encryption scheme. brainly.com/question/3000161

Answer details:

Grade: Senior Secondary School
Subject: Business Study
Chapter: Economics

Keyword:

Demand pull inflation, cost push inflation, demand for goods and services, increase, house price, rising real wages, devaluation, consumer, confidence, rapidly, productive capacity

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Following are the program in python language the name of the program is factors.py

num= int(input("Please enter a positive integer: "))#Read the number by user

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Read the number by user in the "num" variable

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