Chapter
Understanding the Difference Between Demand-Pull and Cost-Push Inflation
21:04 - 25:23 (04:19)
In this episode, the host explains the difference between demand-pull and cost-push inflation, and how they impact the economy. Cost-push inflation is caused by an increase in production costs, while demand-pull inflation is caused by an increase in demand for goods and services.
Clips
Inflation can be caused by either cost push, where the cost of raw materials goes up; or demand pull, where there is a surge in the demand for the finished product leading to an increase in prices.
21:04 - 22:23 (01:19)
Summary
Inflation can be caused by either cost push, where the cost of raw materials goes up; or demand pull, where there is a surge in the demand for the finished product leading to an increase in prices. The pandemic has led to an increase in the demand for houses, which is a perfect example of both cost-push and demand-pull inflation.
ChapterUnderstanding the Difference Between Demand-Pull and Cost-Push Inflation
EpisodeWhat Causes Inflation?
PodcastStuff You Should Know
Understanding the difference between supply shock and demand pull can help us make sense of the complex economic factors that affect our daily lives.
22:23 - 25:23 (03:00)
Summary
Understanding the difference between supply shock and demand pull can help us make sense of the complex economic factors that affect our daily lives. In one scenario, there's an increase in demand and in the other, a decrease in supply.