Demand pull

Subdecks (3)

bottleneck shortages
Paper 2- UK economy performance & policies > Theme 2: The UK economy > measures of Econ performance > 2.1.2- Inflation > part E- causes of inflation > Demand pull
2 cards
money supply
Paper 2- UK economy performance & policies > Theme 2: The UK economy > measures of Econ performance > 2.1.2- Inflation > part E- causes of inflation > Demand pull
3 cards
high consumer spending/ exports
Paper 2- UK economy performance & policies > Theme 2: The UK economy > measures of Econ performance > 2.1.2- Inflation > part E- causes of inflation > Demand pull
2 cards

Cards (10)

what is demand-pull inflation?
inflation caused by excessive growth in AD compared to supply
what does the growth in demand do?
Shifts A.D to the right which allows sellers to raise prices
demand-pull inflation
at original price (AP1) excess demand in the economy
as prices rise, contraction of AD and extension of SRAS
prices for goods/services rise from AP1->AP2