Demand Pull Inflation
4
Demand Pull Inflation • Description of initial Aggregate Demand and Aggregate Supply curves
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Demand Pull Inflation. Description of initial Aggregate Demand and Aggregate Supply curves. AS. The Price Level. Initial Equilibrium. AD 1. P 1. 0. Q 1. Aggregate Output. AS. The Price Level. AD → small P and large Y. AD 2. AD 1. P 2. P 1. 0. Y 1. Y 1. Aggregate Output. - PowerPoint PPT Presentation
Transcript of Demand Pull Inflation
![Page 1: Demand Pull Inflation](https://reader036.fdocuments.in/reader036/viewer/2022082611/56812bd6550346895d904142/html5/thumbnails/1.jpg)
Demand Pull Inflation
• Description of initial Aggregate Demand and Aggregate Supply curves
![Page 2: Demand Pull Inflation](https://reader036.fdocuments.in/reader036/viewer/2022082611/56812bd6550346895d904142/html5/thumbnails/2.jpg)
The Price Level
0
Aggregate Output
AS
AD1
P1
Q1
Initial Equilibrium
![Page 3: Demand Pull Inflation](https://reader036.fdocuments.in/reader036/viewer/2022082611/56812bd6550346895d904142/html5/thumbnails/3.jpg)
The Price Level
0
Aggregate Output
AS
AD1
P1
Y1
AD2
Y1
P2
AD → small P and large Y
![Page 4: Demand Pull Inflation](https://reader036.fdocuments.in/reader036/viewer/2022082611/56812bd6550346895d904142/html5/thumbnails/4.jpg)
The Price Level
0
Aggregate Output
AS
AD1
P1
Y1
AD2
Y2
P2
AD3
Y3
P3
AD → large P and small Y