How Do We Explain Cost Push And Demand Pull Inflation For A Six Marks Question?

If there is a decrease in the supply of goods and services stemming from an increase in the cost of production, we get cost-push inflation. Cost-push inflation means that prices have been "pushed up" by increases in costs of any of the factors of production.
Demand-pull inflation occurs when there is some increase in aggregate demand, categorized by the households, businesses, governments and foreign buyers. They want to purchase more output than the economy can produce and hence compete to purchase limited amounts of goods and services.

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