Explain demand-pull inflation and cost-push inflation

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(a). The magnitude of the impact of a given change in the AD (aggregate demand) on P (price level) and the Real GDP depends on the shape of the AS (aggregate supply curve). Explain your answer using a graph (with AD and AS curves on the same graph).

(b). Using two separate graphs, briefly explain the difference between Demand-pull inflation and Cost-push inflation.

Reference no: EM132647747

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