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Demand-Pull Inflation Explained by Leyla Gasimova is a document available to read on EtoBox.
Inflation is due to excess demand. Inflation occurs when aggregate demand rises and aggregate supply does not, leading to higher prices. Demand-pull inflation can be caused by increased consumer spending, business investment, government spending, exports, or money supply. It can be addressed through contractionary fiscal policy to reduce aggregate demand or supply-side policies to boost potential output. However, some economists argue that excess demand is not the primary cause of inflation, and that inflat
- Author
- Leyla Gasimova
- Language
- EN