Macroeconomics 11th Edition by Michael Parkin

تمرين 5

Use the following figure to answer Problem. In each question, the economy starts out on the curves labeled AD 0 and SAS 0.

Some events occur and the economy experiences a demand-pull inflation.
a. List the events that might cause a demand-pull inflation.
b. Describe the initial effects of a demand-pull inflation.
c. Describe what happens as a demand-pull inflation spiral proceeds.