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"Demand pull" refers to inflation caused when consumers are buying so much stuff, that producers find that they can raise prices without losing sales.

"Cost push" means that raw material or wholesale costs or wages are moving so high that producers finally have to raise their prices in order to avoid losing money at the old prices -- and by doing so they risk losing sales, because they're not sure if customers will accept the higher prices, but they've got to try anyway.

2007-02-25 05:12:22 · answer #1 · answered by KevinStud99 6 · 4 0

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