Demand-pull inflation and cost-push inflation

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1. A. Explain the main differences between demand-pull inflation and cost-push inflation.

B. Analyze the differences between cost-push inflation and built-in inflation.

2. A. Does the official unemployment rate understate the “true” degree of unemployment in the United States?

B. Assume that you owe $5,000.00 to Capital Bank. Would you gain or lose from an unanticipated decrease in inflation?

Reference no: EM131090303

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