All categories

3 years ago

How does demand-pull inflation differ from cost-push inflation?

2 answers:

5 0

The main difference between cost-push inflation and demand-push inflation is that the cost-push inflation occurs due to the increase in the cost of the product, and demand-push inflation occurs due to the increase in the demand of the product.

Further Explanation:

Demand-pull inflation:

Demand-pull inflation refers to the increase in the price of the commodities due to the shortage in the supply. When the demand of a commodity exceeds the supply of the commodity, the rise in price is known as demand-pull inflation.

Cost-push inflation:

Cost-push inflation refers to the increase in the price of the commodity because of the increase in the cost of the commodity. The cost of the commodity increases because of an increase in wages and material costs. The increase in cost will increase the price of the product. It can result in a decrease in the supply of the commodity.

Difference between cost-push inflation and demand-push inflation:

The main difference between the cost-push inflation and demand-push inflation is that the earlier one increases the price of the commodity because of the decrease in the supply of the product due to the increased cost of production. In demand-push inflation, the rise in price occurs when demand overtakes the supply. The cost of the production is not affected in demand-push inflation.

Thus, the main difference between cost-push inflation and demand-push inflation is that the cost-push inflation occurs due to the increase in the cost of the product and demand-push inflation occurs due to the increase in the demand of the product.

Learn More:

Learn more about the product leadership brainly.com/question/6610513
Learn more about the demand and supply brainly.com/question/5471118
Learn more about the demand brainly.com/question/11093180

Answer Details:

Grade: Senior school

Chapter: Inflation

Subject: Economics

Keywords: demand-pull, inflation, differ, from, cost-push, deflation, increase in price, purchasing power, demand, and supply.

kicyunya [14]3 years ago

4 0

<span>Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve. This is commonly described as "too much money chasing too few goods".</span>

You might be interested in

Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid semiannually on January 1 and

Karo-lina-s [1.5K]

Answer:

Bond interest expense = $2,290

so correct option is b. $2,290

Explanation:

given data

Bond issued = $50,000

Interest rate = 10%

interest semi-annually = 5%

time period = 5 year

to find out

amount of bond interest expense

solution

we get first Cash interest payment that is here

Cash interest payment = $50,000 × 5%

Cash interest payment = $2,500 ....................1

and Bond premium will be

Bond premium = $52,100 – $50,000

Bond premium = $2,100 .......................2

we know interest paid semi annually so time period will be = 10

so Amortization of bond premium will be here as

Amortization of bond premium = $\frac{2100}{10}$

Amortization of bond premium = $210 .................3

so Bond interest expense will be calculate as

Bond interest expense = Cash interest payment - Amortization of bond premium .......................4

put here value

Bond interest expense = $2,500 - $210

Bond interest expense = $2,290

so correct option is b. $2,290

8 0

4 years ago

Because of its highly efficient and low-cost distribution system, andro stores inc., a multinational retail corporation, has an

stiks02 [169]

It is clear, then, that Andro has a "sustainable competitive advantage" over its competition.

The present business condition is exceptionally competitive. It's currently much simpler and less expensive to fire up a business, especially with innovation empowering business to be led on the web and globally to win clients in remote markets.

A sustainable competitive advantage is the key to business achievement. The power empowers a business to have more noteworthy center, more deals, better overall revenues, and higher client and staff maintenance than its rival

6 0

3 years ago

if your school supplies cost $28.88 and you gave the cashier $40.00 how much change should you expect to receive

viva [34]

Answer:

11.12

Explanation:

28.88 - 40.00 = 11.12

5 0

3 years ago

A restaurant manager keeps track of the number of incorrect orders sent back to the kitchen. this is similar to the method of me

exis [7]

The answer is fault ratio. It is done by counting the number of errors. The manager might be learning the causes of these errors to make proper interventions and bring more accurate orders in order to improve efficiency. It will help promote the restaurant on their services and attract more customers.

4 0

3 years ago

Peggy McLaughlin runs an ice cream shop. She is determining how many employees should work next week and at what times. She is p

Lunna [17]

Answer:

organizing

Explanation:

its jacksepticeyes sister his full name is sean McLaughlin

7 0

4 years ago