Two causes of inflation
Two causes of inflation
Inflation is a sustained rise in the general price level. Demand-pull inflation occurs when excess aggregate demand causes prices to rise, while cost-push inflation occurs when rising production costs cause firms to raise prices.
Step-by-step lessons on CIE Intl A Level Economics 4.6.4 causes of inflation: cost-push and demand-pull inflation. Each one builds up to exam-style questions.