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Classical economists attribute this rise in aggregate demand to money supply. Demand-pull or demand-side inflation is a rise in the price level caused by rapid growth of aggregate demand. Cost Push Inflation Cost Push Inflation Aggregate Demand What Is Demand 3 Demand-pull inflation is triggered. . Such inflation is called demand-pull inflation henceforth DPI. B depends on the movements in commodity prices. In short the general price level in the economy is pulled up by the pressure from buyers total expenditures. Demand Pull Inflation is commonly described as too. Demand Pull Inflation involves inflation rising as real Gross Domestic Product rises and unemployment falls as the economy moves along the Phillips Curve. Describe a hypothetical situation where either demand-pull or cost-push inflation occurs addressing how the situation affects either the AD or AS curve as well as the implications for prices and the overall ef...