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3.4.5 Causes and consequences of inflation

Card 1 of 25

How can you distinguish demand-pull from cost-push inflation?

A
  • Whether income is linked to prices.
  • What the household spends money on.
B

Ask what moved first: spending or production costs.

C
  • Demand-pull: prices rise alongside growing output.
  • Cost-push: prices rise while output may fall.
D

Expected inflation allows pay and contracts to be adjusted in advance, reducing disruption.

Card 1 of 25

3.4.5 Causes and consequences of inflation Flashcards

  1. GCSE
  2. /Economics
  3. /3.4.5 Causes and consequences of inflation

25 flashcards on OCR GCSE Economics 3.4.5 Causes and consequences of inflation: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.

Flashcards