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Jim Rickards: Cost Push Inflation Vs Demand Pull Inflation
A circumstance known as "too many dollars chasing too few things" is how analysts explain Demand-pull inflation, which drives up prices as a result of supply shortages. Cost-push inflation also referred to as wage-push inflation, is when overall prices rise (inflation) as a result of rising labor and raw material costs.
The aggregate supply (quantity of all production) in the economy can be reduced by higher production costs.
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