How does Demand-Pull inflation affects recession?
demand pull inflation is inflation caused by persistent rises in aggrergate demand. when demand for goods keep rising it means people would keep demanding them and thus the ad curve would shift to the right… goods will become expensive and people will have less to spend that would cause a fall in their standard of living that would prompt people to spend less as they would then have less money to spend, firms would fire employees as it would be unable to pay their wages unemployment would rise and so recession would begin the economy.
