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MACRO QUERY:Cost-Push + Demand-Pull inflation and "elasticity"-- does it apply ?

by someone@[EMAIL PROTECTED] Sep 20, 2008 at 06:41 PM

Hi,

I am trying to explain Cost-Push inflation .Can the concept of
elasticity be used in Macroeconomics ?

If so , how is elasticity relevant in demand-pull and cost-pull
inflation ?

So far I have avoided using the term (I think it only pertains to
Microeconomics ) and instead have talked about  the multiplier effect
and the slope of the SR-AS curve i.e either more flat(increases the
multiplier) or more vertical ( decreases the multiplier ).

My graph has Price on the vertical axis and Q(output)or GDP on the
horizontal axis.

Can anyone help clear this up ?

Any help appreciated and thanks in advance.

Peter
 




 2 Posts in Topic:
MACRO QUERY:Cost-Push + Demand-Pull inflation and "elasticity"--
someone@[EMAIL PROTECTED]  2008-09-20 18:41:22 
Re: MACRO QUERY:Cost-Push + Demand-Pull inflation and "elasticit
orangatang1@[EMAIL PROTEC  2008-09-20 08:47:20 

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