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Demand pull inflation

Demand pull inflation arises where there is an increase in aggregate demand[?] in an economy relative to aggregate supply[?]. This is commonly described as "too much money chasing too few goods[?]". This would not be expected to persist over time due to increases in supply, unless the economy is already at a full employment level.

The term demand pull inflation is mostly associated with Keynesian economics.

See also : Economics, cost push inflation

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