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.
Neo-Keynesian theory distinguished two distinct kinds of inflation: demand-pull (caused by shifts of the aggregate demand curve) and cost-push (caused by shifts of the aggregate supply curve). Stagflation, in this view, is caused by cost-push inflation.