Demand-pull inflation: Difference between revisions

'''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 [[Good (economics)|goods]].''"<ref>Barth, J. R. & Bennett, J. T. (1975). Cost-push versus Demand-pull Inflation: Some Empirical Evidence. Journal of money, credit & banking (Ohio State University Press),7(3), 391.</ref> More accurately, it should be described as involving "''too much money spent chasing too few goods,''" since only money that is spent on goods and services can cause inflation. This would not be expected to happen, unless the economy is already at a [[full employment]] level. It is the opposite of [[cost-push inflation]]. It's so nakakagigil dahil hindi ko gets ang Economics. Can someone explain it? I'm getting mad ha.