00:01
So the easiest way to remember demand pull versus cost push is to draw your aggregate supply, aggregate demand model, which usually looks something like this.
00:10
Aggregate demand, aggregate supply.
00:13
Remember, aggregate supply is representing firm pricing and aggregate demand is representing the sources of demand in the economy, c plus i plus g.
00:23
So first of all, because we have inflation, we know we need prices to be going up, right? that's the definition of inflation.
00:32
We need inflationary pressure.
00:35
And because it's demand, we know it's the aggregate demand curve, right? demand pull inflation, something is happening with the aggregate demand curve...