According to the simple extended AD-AS model, demand-pull inﬂation and cost-push inﬂation have
the same effect on output in the long run.

Name: According to the simple extended AD-AS model, demand-pull inﬂation and cost-push inﬂation have the same effect on output in the long run.
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In the long run, the economy is expected to return to its natural level of output, regardless of whether the inflation is demand-pull or cost-push, as prices and wages adjust.

According to the Simple Extended AD-AS Model, Demand-Pull Inﬂation and Cost-Push