Demand-pull inflation
What Demand-pull inflation means in Economics A-Level, as defined for AQA.
Definitions of Demand-pull inflation
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Reference: AQA
A rise in the general price level caused by an injection into the circular flow, such as higher demand for UK exports, when the UK is near full capacity.
Arises from rightward shifts in aggregate demand when the economy is close to full employment, often described as too much money chasing too few goods.
Topics that use Demand-pull inflation
- Inflation and deflation (AQA A-Level)
Related terms
- Aggregate demand
- Cost-push inflation
- Debt and wealth effects
- Deflation
- Deflationary policies
- Depreciation
- Disinflation
- Inflation
Using Demand-pull inflation in the exam
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