Demand-Pull Inflation

Demand-Pull Inflation
A term used in Keynesian economics to describe the scenario that occurs when price levels rise because of an imbalance in the aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices increase. Economists will often say that demand-pull inflation is a result of too many dollars chasing too few goods.

This type of inflation is a result of strong consumer demand. When many individuals are trying to purchase the same good, the price will inevitably increase. When this happens across the entire economy for all goods, it is known as demand-pull inflation.

Investment dictionary. . 2012.

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  • Demand-pull inflation — Aggregate Demand increasing faster than production. Demand pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls …   Wikipedia

  • demand-pull inflation — A theory of inflation or price increases resulting from so called excess demand. Related: cost push inflation. Bloomberg Financial Dictionary * * * demand pull inflation demand pull inflation ➔ inflation * * * demand pull inflation UK US noun [U] …   Financial and business terms

  • demand-pull inflation — paklausos sukelta infliacija statusas Aprobuotas sritis Ekonomika apibrėžtis Infliacija, lemiama visuminės paklausos didėjimo. atitikmenys: angl. demand pull inflation šaltinis Lietuvos banko Ekonomikos departamentas …   Lithuanian dictionary (lietuvių žodynas)

  • demand-pull inflation — demand′ pull infla′tion n. ecn bus inflation in which rising demand results in a rise in prices Compare cost push inflation • Etymology: 1955–60 …   From formal English to slang

  • demand-pull inflation —  Inflation caused by excessive demand, usually brought on by overly stimulative fiscal or monetary policies …   American business jargon

  • demand-pull inflation — noun inflation caused by an increase in demand or in the supply of money • Hypernyms: ↑inflation, ↑rising prices * * * /di mand pool , mahnd / inflation in which rising demand results in a rise in prices. Also called buyers inflation. Cf. cost… …   Useful english dictionary

  • demand-pull inflation — /di mand pool , mahnd / inflation in which rising demand results in a rise in prices. Also called buyers inflation. Cf. cost push inflation. * * * …   Universalium

  • demand-pull inflation — A rise in prices caused by an excess of demand over supply in the economy as a whole. When the labour force and all resources are fully employed extra demand will only disappear as a result of rising prices. Compare cost push inflation …   Big dictionary of business and management

  • demand-pull inflation — /dəmænd ˌpʊl ɪnˈfleɪʃən / (say duhmand .pool in flayshuhn) noun Economics See inflation (def. 2b). Compare cost push inflation …  

  • demand-pull inflation — increase in prices due to demand for merchandise and services which exceeds their supply …   English contemporary dictionary

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