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Demand-pull inflation: prices rise due to shortage; firms produce more and raise price to meet demand.

Cost-push inflation: prices rise due to increasing costs of production; firms raise price in order to not produce less.

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Q: Differences demand-pull inflation and cost-push inflation?
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What are the differences between inflation and deflation?

Inflation is when the value of money declines so it takes more dollars to purchase the same goods or services. Deflation is the opposite.


Will inflation Peter out?

inflation peter out is when inflation diminish or stops .


What refers to the persistent increase in the prices of goods and services?

inflation


The consumers price index helps the U.S. government measure what?

inflation


What will bi the formula of inflation?

Current year's inflation - last year's inflation / last year's inflation * 100 e.g ((B-A)/A)*100

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