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The effects of unprecedented government spending (of money it does not have) and unprecedented Federal Reserve See both shifts in the diagram below. Graph showing both cost-push inflation and demand-pull inflation. Demand-pull inflation occurs when high demand for goods and services exceeds supply, driving prices up. Cost-push inflation
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They're both bad in that they both raise inflation. But supply shock are trickier because they also lower economic activity. Demand Pull and Cost Push Inflation # Explanation in English and Malayalam
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Cost-push Inflation and Demand-pull Inflation Two main forces drive inflation: cost-push, when aggregate supply decreases, and demand-pull, which occurs when overall demand increases faster than supply. Causes of inflation - demand-pull and cost-push
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