00:01
Cost push inflation as opposed to demand push inflation.
00:09
Okay, so you get a cost push inflation or demand pool inflation.
00:21
Cost push inflation is the result of this situation like this.
00:27
So this is your aggregate demand.
00:31
This is your aggregate supply, right? and then aggregate supply decreases when the economy is below full employment level, right? and gdp, real gdp is below the full employment level, right? this is the case because of the decrease in agriculture supply.
01:03
Remember, this is real gdp.
01:07
This is price level, right? so as you see, because the aggregate supply is less than the full employment aggregate supply supply.
01:13
You are going to have higher prices.
01:18
Price level is here instead of here.
01:25
Original price level was here.
01:28
And now, let me do it all...