Demand-pull inflation
What Demand-pull inflation means in Economics GCSE, as defined for AQA.
Definitions of Demand-pull inflation
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Reference: AQA
Occurs when aggregate demand in an economy outpaces aggregate supply, often described as too much money chasing too few goods.
Occurs when aggregate demand outpaces aggregate supply, often described as 'too much money chasing too few goods'.
A type of inflation that raising interest rates primarily targets by reducing aggregate demand.
Topics that use Demand-pull inflation
- Inflation and price stability (AQA GCSE)
Related terms
- Aggregate demand
- Consumer Price Index (CPI)
- Consumer Prices Index
- Cost-push inflation
- Fiscal policy
- Index numbers
- Inflation
- International competitiveness
Using Demand-pull inflation in the exam
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