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Demand pull inflationDemand 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.
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This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Demand pull inflation".