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calwords

  • 2 years ago

from the theory of demand pull inflation what happens when market prices exceed salary allocation?

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  1. MamtaK
    • 2 years ago
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    when prices in the market exceed salary allocation then demand pull inflation decreases. ( we can use the concept:- price level and demand are inversely correlated)

  2. MamtaK
    • 2 years ago
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    and here in case of salary allocation ..if market prices are more than one's income capacity then he will be buying less and demanding less. this leads to decrease in demand pull inflation.

  3. AdrieneLimbu
    • 2 years ago
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    mamta i go with ur concept...

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