Demand Pull Inflation
P
QP AS
Price Level
P'
E'
P
E
AD'
AD
QP Q Q'
Q
Real Output
Demand Pull Inflation
Qp
P
AS
P1 P0
未实现充分就业时的需求拉动Q0
AD1 AD0 Q Q1
Price and Wage Controls
• In the early 1970s, such “supply shocks” included crop failures, a worldwide drought, and a quadrupling of the world price of crude oil.
Cost Push Inflation
• That meant that the traditional Keynesian tools could solve only half of the stagflation problem at any one time--and only by making the other half worse.
Cost Push Inflation
• Cost-push or supply side inflation occurs when external shocks such as rapid increases in raw material prices or wage increases drive up production costs.
Inflation and Stagflation