Chapter 18 - Extending the Analysis of Aggregate Supply2. The aggregate supply and demand model can also be helpful in explaining why demand management policies might entail supply-side effects that limit the attainment of policy goals. The shifts in Figures 35.4 and 35.5 illustrate this problem.3. Demand-pull and cost-push inflation were introduced earlier, so they should be familiar. However, areview of the aggregate demand and supply model would be a useful way to begin the discussion. Explain that it is difficult to distinguish the two types of inflation in the real world, since the causes of inflation are complex. Use Figure 35.3 and 35.4 to illustrate.4. A speaker who can recall a time or country where wage-price controls were used, and the problems associated with them might be interesting for students, who might otherwise believe these controls are a simple solution.5.