In A Phillips Curve Dynamic Aggregate Supply Curve Such As Tlt Tt 1 Yt Yt Vt A Which Variable S Would Be As 1 (110.43 KiB) Viewed 19 times
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In a Phillips curve/Dynamic Aggregate supply curve such as Tlt = Tt-1 + $(Yt - Yt) + Vt a) which variable(s) would be associated with cost-push inflation and which with demand-pull inflation? b) If you were to observe two short-term equilibria, the second with higher inflation than the first, how could you tell whether the increase in inflation was primarily cost-push or demand-pull?
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