Distinguish between demand pull and cost push inflation
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Explanation:
demand pull inflation is one where there is an increase in price level due to the increase in the aggregate demand. On the other hand the cost push inflation is one where price level increases due to the increase in the price of inputs like increase in wages and raw materials.
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heya❤
➡️Demand-pull inflation arises when the aggregate demand increases at a faster rate than aggregate supply.Cost-Push Inflation is a result of an increase in the price of inputs due to the shortage of cost of production, leading to decrease in the supply of outputs.
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