Demand-pull inflation is initiated by an increase in aggregate demand.
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Q159: Refer to the information provided in Figure
Q160: Stagflation is an economic condition characterized by
Q161: If firms increase their prices because of
Q162: Other things equal, demand-pull inflation results in
Q163: A demand-side shock, such as a sharp
Q165: Expectations of higher future prices cause firms
Q166: An increase in aggregate demand causes stagflation.
Q167: In a binding situation, a positive cost
Q168: Supply-side inflation is caused by increases in
Q169: A cost shock, such as a natural
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