Share
Explore BrainMass

Difference between cost-push and demand-pull inflation

What is the difference between cost-push and demand-pull inflation? Which was the primary cause of inflation in the early 1970's? What type of inflation has the Federal Reserve been trying to prevent in 1998 and 1999?

Solution Preview

What is the difference between cost-push and demand-pull inflation? Which was the primary cause of inflation in the early 1970's? What type of inflation has the Federal Reserve been trying to prevent in 1998 and 1999?

In economics, inflation is an increase in the general level of prices of a given kind. General inflation is referred to as a rise in the general level of prices. General inflation is a fall in the market value or purchasing power of money within an economy, as compared to currency devaluation which is the fall of the market value of a currency between economies.

Inflation is the opposite of deflation. Disinflation refers to slowing the rate of inflation, that is, prices are still rising, but at a slower rate than before. Reflation is a term used to denote inflation after a period of deflation, meaning inflation designed to restore prices to a previous level.

Inflation is measured by taking a ...

Solution Summary

This explains the difference between cost-push and demand-pull inflation

$2.19