Inflationary pressures
What Inflationary pressures means in Economics A-Level, as defined for AQA.
Definitions of Inflationary pressures
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Reference: AQA
Lower when a negative output gap reduces wage demands, but significant demand-pull and cost-push pressures arise when aggregate demand outstrips aggregate supply.
Demand-pull pressures that arise during a boom when resources are used beyond normal capacity, such as workers doing excessive overtime.
Topics that use Inflationary pressures
- Economic growth and the economic cycle (AQA A-Level)
- Possible conflicts between macroeconomic policy objectives (AQA A-Level)
Related terms
- Negative output gap
- Positive output gap
- Aggregate demand
- Aggregate supply
- Asset price bubbles
- Cyclical unemployment
- Demand-side policies
- Economic fluctuations
Using Inflationary pressures in the exam
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