1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Katarina [22]
3 years ago
12

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

Business
2 answers:
hodyreva [135]3 years ago
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:

  1. Learn more about the product leadership brainly.com/question/6610513
  2. Learn more about the demand and supply brainly.com/question/5471118
  3. 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
If happiness was money, what would your job be?​
lawyer [7]

Answer:

Being appreciated by people.

7 0
3 years ago
Read 2 more answers
( ____/10) Economic Growth a. Define GDP, identify what is not included, define the four components, and give an example of each
Harlamova29_29 [7]

Answer: Gross domestic product (GDP) is the monetary value of the market value of all final goods and services produced in a country at a specific time period.

Explanation:

Economic growth is the increase in the total output of goods and services in the economy.

Gross domestic product (GDP) is the monetary value of the market value of all final goods and services produced in a country at a specific time period. The four components of the gross domestic product (GDP) are personal consumption, business investment, government spending, and net exports (difference between export and import)

GDP = C + I + G + (X - M).

where C = consumption

I = investment

G = government expenditure

(X - M) = Net Export

The items not included in the are

1. Sales of goods produced outside the domestic borders of a country.

2. Sales of used goods.

3. Black market i.e. the illegal sales of goods and services.

4. Intermediate goods.

Nominal GDP is measure of the monetary value of all the final goods and services that are produced within a country at current market prices while Real GDP is the measure of a country’s output using the value of its goods and services, investments, government spending and exports. Real GDP is the nominal GDP and adjustment in inflation or deflation.

For example, if nominal GDP is $120,000 and the deflator is 1.4. Calculate Real GDP.

Real GDP = Nominal GDP / Deflator

= 120000 / 1.4

= $ 85714.29

7 0
3 years ago
So like is there anyone that likes twillzlers (yes ik i cant spell), trips on hot pockets, is really nice, likes orange and blue
antiseptic1488 [7]
Everything but the twizlers I don’t like them lol sorry -
5 0
2 years ago
How vape advertisers target teens and children?
Romashka-Z-Leto [24]

Answer:

Explanation:

children or teens who see other people having vapes at there age they might want one too.

6 0
2 years ago
Textbooks, transportation and room and board are all...
Alex777 [14]

Answer:

b. additional costs for attending a college or university.

Explanation:

Textbooks, transportation and room and board are additional costs for attending a college or university.

They aren't included as part of tuition costs.

They are the real costs of attending college.

These costs needs to be considered when choosing a college.

I hope my answer helps you

6 0
3 years ago
Other questions:
  • Albert, an accountant, is attending a meeting at the Greatview Hotel. The meeting, which has drawn more than 200 accountants fro
    10·1 answer
  • Calculate Net Pay
    8·1 answer
  • Identify which qualitative characteristic of accounting information is best described in each item below. (Do not use relevance
    7·1 answer
  • What is licensure? I’m doing intro to business
    12·1 answer
  • carlos marx divide el capital en: A) viriable y fijo B) circulante y giratorio C) variable y constante D) variable y mixto E) pr
    6·1 answer
  • What is one of the major problems with working at home?
    6·2 answers
  • Sea Side Enterprises is trying to predict the cost associated with producing its anchors. At a production level of 5 comma 500 ​
    12·1 answer
  • Pearsall Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO r
    11·1 answer
  • (a) Taking into account all of the information in the case study above, would you advise Mary-Ann and Sally to become a limited
    6·1 answer
  • Four-year-old jewel thinks that all grown-ups are mommies or daddies. What has jewel used to classify adults in this way?.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!