Question

how does demand - pull inflation differ from cost - push inflation?
demand - pull inflation is driven by consumers, while cost - push inflation is driven by producers.
demand - pull inflation is driven by producers, while cost - push inflation is driven by consumers.
demand - pull inflation is driven by the private sector, while cost - push inflation is driven by the government.
demand - pull inflation is driven by the government, while cost - push inflation is driven by the private sector.

Explanation:

Demand - pull inflation occurs when aggregate demand in an economy outpaces aggregate supply, often due to increased consumer spending. Cost - push inflation happens when production costs, like wages or raw materials, rise, forcing producers to increase prices. So demand - pull is consumer - driven and cost - push is producer - driven.

Answer:

Demand - pull inflation is driven by consumers, while cost - push inflation is driven by producers.