Demand Pull Inflation | 60 Second Economics | A Level & IB

Demand-pull inflation occurs when aggregate demand for goods and services outpaces the economy's ability to supply them.

Demand-pull inflation happens when AD grows at an unsustainable rate leading a positive output gap (Actual GDP higher than Potential GDP)

#inflation #shorts #economics

• #education
• #demand_pull
• #demand_pull_inflation
• #demand_pull_inflation
• #causes_of_inflation
• #types_of_inflation
• #demand_pull_inflation_diagram_with_explanation
• #demand_pull_vs_cost_push_inflation