If cost push pressures reduce the potential level of real national income (e g from Y 1 to Y 3 in the diagram), why do demand pull pressures not increase the potential level of real national income (e g from Y 1 to Y 2 in the diagram) ...

Because demandpull pressures affect demand not potential o ...

If cost-push pressures reduce the potential level of real national income (e.g. from Y 1 to Y

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If cost-push pressures reduce the potential level of real national income (e.g. from Y₁ to Y₃ in the diagram), why do demand-pull pressures not increase the potential level of real national income (e.g. from Y₁ to Y₂ in the diagram)?

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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If cost-push pressures reduce the potential level of real national income (e.g. from Y 1 to Y

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