Answer to Question #60782 in Macroeconomics for [e-mail]

Question

why might it be difficult to establish the extent to which a given rate of inflation is either demand pull or cost pull?

Answer 1

It might it be difficult to establish the extent to which a given rate of inflation is either demand pull or cost pull, because there are a lot of other factors like interest rates, money supply, unemployment, that influence the price and inflation levels.