d) Causes of inflation

e) causes of inflation: demand pull, cost push, growth of the money supply

f) the effects of inflation on consumers, firms, the government, and workers

demand-pull inflation

  • graph

cost-push inflation

  • graph

changes to the money supply

  • decreased interest rate → demand-pull inflation

  • increase in the amount of money in circulation → demand-pull inflation

changes to wages

  • increased cost of production → cost-push inflation