Question: What gaps do demand-pull inflation and cost-push inflation cause? Question 1 options: Demand-pull inflation causes a recessionary gap, and cost-push inflation causes a recessionary gap.

What gaps do demand-pull inflation and cost-push inflation cause?

Question 1 options:

Demand-pull inflation causes a recessionary gap, and cost-push inflation causes a recessionary gap.
Demand-pull inflation and cost-push inflation both cause an inflationary gap.
Demand-pull inflation causes an inflationary gap, and cost-push inflation causes a recessionary gap.
Demand-pull inflation causes a recessionary gap, and cost-push inflation causes an inflationary gap.

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