10-2 The compartments of the forearm are the anterior, for the flexors (median and ulnar nerves), and the posterior, for the extensors (radial and posterior interosseous nerves). See figure 10-1.
Demand-pull inflation occurs when aggregate demand for goods and services in an economy rises more rapidly than an economyâs productive capacity. One potential shock to aggregate demand might come from a central bank that rapidly increases the supply of money.
In the long run we will return to the normal equilibrium. Cost-push inflation occurs when the short-run aggregate supply curve shifts leftward, as from AS1 to As2. If the government attempts to counter the decrease in real domestic output by increasing AD1 to AD2, the price level rises. Essentially, the economy moves from point a to b to c.