Economics · Macroeconomics
The most important difference between Demand-Pull inflation and Cost-Push inflation is that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only demand-pull inflation causes a rise in unemployment
- 2Demand-pull inflation is caused by monetary policy only; cost-push by fiscal policy
- 3In cost-push inflation output falls and prices rise (stagflation), while in demand-pull output does not fall✓
- 4In demand-pull inflation output falls, while in cost-push it rises
Correct answer
In cost-push inflation output falls and prices rise (stagflation), while in demand-pull output does not fall
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