What Is the Difference Between Demand-Pull Inflation and Cost-Push Inflation

question 12

Multiple Choice

What is the difference between demand-pull inflation and cost-push inflation?  

• A) Cost-push inflation is caused by shifts of the aggregate demand curve, but demand-pull inflation is caused by cyclical activity in the economy. 
• B) Demand-pull inflation is caused by shifts of the aggregate demand curve, but cost-push inflation is caused by shifts of the aggregate supply curve. 
• C) Demand-pull inflation is caused by government deficit spending, but cost-push inflation is caused by firms. 
• D) Demand-pull inflation is caused by foreign demand, but cost-push inflation is caused by domestic production problems.

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Definitions:

Antigen

A substance that the immune system can recognize as foreign or dangerous, triggering an immune response.

Primary Response

The initial response of the immune system to a new antigen, characterized by a gradual increase in the production of antibodies.

Fc Fragment

The crystallizable fragment of an antibody that interacts with cell receptors and the complement system, playing a key role in the immune response.

Phagocytes

Cells that protect the body by ingesting harmful foreign particles, bacteria, and dead or dying cells, essential for the immune response.