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:

Stage 2 Sleep

A phase of sleep characterized by specific brain waves and sleep spindles, serving as a transitional period between light sleep and deep sleep.

Genital Arousal

A physiological response involving increased blood flow to the genital area, often resulting from sexual stimulation.

REM Sleep

A phase of sleep characterized by rapid eye movements, increased brain activity, and vivid dreaming, playing a critical role in emotional regulation and memory consolidation.

Stage 2

In various contexts, this could refer to the second phase of a multi-stage process. Without additional context, the specific meaning remains broad.