Glossary · Macro · Inflation

Demand-pull inflation

Inflation caused by total spending growing faster than the economy can produce, so buyers bid prices up. Too much money chasing too few goods. On the AD-AS graph it is aggregate demand shifting right.

Watch it happen step by stepTaught in: Causes of Inflation

Related terms

Cost-push inflationAggregate demand (AD)Inflationary gap

More from inflation

Consumer price index (CPI)DeflationHeadline vs core inflationHyperinflationInflationLaspeyres price indexMenu costs

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