Demand pull inflation ppt
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Transcript of Demand pull inflation ppt
![Page 1: Demand pull inflation ppt](https://reader033.fdocuments.net/reader033/viewer/2022061523/557cf0aed8b42a057f8b522a/html5/thumbnails/1.jpg)
DEMAND PULL INFLATION
LESLYN LACDAO
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• SUSTAINED INCREASE IN THE PRICES OF GOODS AND SERVICES RESULTING FROM A HIGH DEMAND, STIMULATED BY EASY CREDIT AND HIRE PURCHASE OFFERS ACCOMPANIED BY INSUFFICIENT SUPPLIES.
• THE MOST COMMON CAUSE OF INFLATION
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• PARKIN AND BADE GIVE THE FOLLOWING EXPLANATION FOR DEMAND-PULL INFLATION:
• "THE INFLATION RESULTING FROM AN INCREASE INAGGREGATE DEMAND IS CALLED DEMAND-PULL INFLATION. SUCH AN INFLATION MAY ARISE FROM ANY INDIVIDUAL FACTOR THAT INCREASES AGGREGATE DEMAND, BUT THE MAIN ONES THAT GENERATE ONGOING INCREASES IN AGGREGATE DEMAND ARE
• INCREASES IN THE MONEY SUPPLY
• INCREASES IN GOVERNMENT PURCHASES
• INCREASES IN THE PRICE LEVEL IN THE REST OF THE WORLD
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WHAT CREATES DEMAND-PULL INFLATION?
• GROWING ECONOMY
• EXPECTATION OF INFLATION
• DISCRETIONARY FISCAL POLICY
• STRONG BRAND
• TECHNOLOGICAL INNOVATION
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EXAMPLE:
![Page 6: Demand pull inflation ppt](https://reader033.fdocuments.net/reader033/viewer/2022061523/557cf0aed8b42a057f8b522a/html5/thumbnails/6.jpg)
REFERENCES:
• HTTP://USECONOMY.ABOUT.COM/OD/INFLATIONFAQ/F/DEMAND-PULL-INFLATION.HTM
• HTTP://ECONOMICS.ABOUT.COM/CS/MONEY/A/INFLATION_TERMS.HTM
• HTTP://ANSWERS.YAHOO.COM/QUESTION/INDEX?QID=20080318155950AANRYCN