This is a graph showing the CPI evolution. Identify the different concepts below. Use the definitions of inflation to describe the evolution of prices.

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Using the Expenditure Model (GDP = C + G + I + NX), draw a graph that depicts Demand-Pull inflation.

Inflation is a rise inMultiple Choicethe general level of prices over time.the standard of living over time.unemployment over time.real GDP over time.

_____ inflation is inflation that occurs when the demand for goods and services is greater than the supply.Question 6Answera.Supply-sideb.Demand-pullc.Demand-pushd.Cost-pushe.Demand-side

Explain the concept of demand-pull inflation.