Question: Which is a correct statement? A supply shock will cause a variation of demand - pull inflation that can lead to hyperinflation. It is relatively
Which is a correct statement?
A supply shock will cause a variation of demandpull inflation that can lead to hyperinflation.
It is relatively easy to distinguish between costpush and demandpull inflation even if you dornt know the source of the inflation.
Demandpull inflation will continue so long as there is excess total spending in the economy.
Costpush inflation will continue because increased perunit cost will lead to a reduced supply.
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