Question

Distinguished between demand pull and cost push inflation. Explain.

Answer 1

How price inflation begins?- this is demamd pull...Why inflation is so difficult to stop, once started?- that's come under cost push inflation

Answer 2

demand pull inflation is one where there is an increase in price level due to the increase in the aggregatedemand. On the other hand the cost push inflation is one where pricelevel increases due to the increase in the price of inputs like increase in wages and raw materials.