Demand-pull inflation is worse than cost-push inflation because,in addition to higher prices,demand-pull inflation also reduces employment.

Question

Quizplus · Accepted Answer

Demand-pull inflation is typically associated with a growing economy where demand for goods and services increases, potentially leading to higher employment, whereas cost-push inflation, caused by rising production costs, can lead to reduced output and employment.

Demand-Pull Inflation Is Worse Than Cost-Push Inflation Because,in Addition to Higher