Demand-pull inflation and cost-push inflation are identical concepts because both entail rising nominal wages and rising prices.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when demand for goods and services exceeds the supply, leading to an increase in prices. Cost-push inflation occurs when there is an increase in production costs, such as wages or raw materials, leading to an increase in prices. While both types of inflation may result in rising prices, the underlying causes are different.

Demand-Pull Inflation and Cost-Push Inflation Are Identical Concepts Because Both