00:01
Okay, so during demand -pull inflation, the economic scenario occurs when the aggregate demand in an economy outpaces aggregate supply, which leads to an increase in overall price levels.
00:13
So this situation is generally represented by the aggregate demand curve shifting to the right.
00:21
So, this increase in demand can be due to several factors including increased consumer spending, increased government spending, or increased business investment, which drives up the prices because the demand for goods surpasses the available supply.
00:49
So, increased consumer spending, increased government spending, increased business investments.
01:11
Okay, so given the description of demand -pull inflation, for a, leftward, an increase in output and employment.
01:26
So this is incorrect, because demand -pull inflation involves a rightward shift in the ad curve, not leftward.
01:36
For b, rightward, a decrease in prices and wages.
01:41
And this is also incorrect, as a rightward shift in the ad curve under demand -pull inflation, leads to an increase in prices, not a decrease...
