top of page

Economics explained


Inflation and deflation

Causes of demand-pull inflation

Causes of demand-pull inflation

The secret to scoring awesome grades in economics is to have corresponding awesome notes.
A common pitfall for students is to lose themselves in a sea of notes: personal notes, teacher notes, online notes textbooks, etc... This happens when one has too many sources to revise from! Why not solve this problem by having one reliable source of notes? This is where we can help.
What makes TooLazyToStudy notes different?
Our notes:
  • are clear and concise and relevant
  • is set in an engaging template to facilitate memorisation
  • cover all the important topics in the O level, AS level and A level syllabus
  • are editable, feel free to make additions or to rephrase sentences in your own words!

    Looking for live explanations of these notes? Enrol now for FREE tuition!

Demand-pull inflation is caused by higher levels of aggregate demand driving up the general price level of goods and services.

Increases in aggregate demand may result from:

a consumer boom
a rise in government spending
higher business confidence
an increase in investment
an increase in net exports.

Increase in money supply

Monetarists argue that the key cause of higher aggregate demand is increases in the money supply. They suggest that if the money supply grows more rapidly than output, the greater supply of money will drive up the price level.

Imported inflation

Imported inflation occurs due to higher import prices, forcing up costs of production and therefore causing domestic inflation.

A cut in interest rates

A cut in interest rates causes a rise in consumer spending and higher investment. This boost to demand causes a rise in aggregate demand and inflationary pressures.

bottom of page