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Unformatted text preview: 1. Idle Capacity: When expenditures increase, output increases b ut PL (price level) remains the same. (Many unemployed people, machines, factors of production…) 2. A Capacity in Between: Output increases PL also increases. 3. Full Capacity: Output remains the same, expenditures cause full price increase. (All capacity uses, no unemployment) b. Cost Push or Supply-Side Inflation (Maliyet İtişli-Arz) In this type, increase in per unit production costs causes the inflation. Due to some reasons per unit production costs may increase. *Cost ↑Profits↓Supply↓Price↑ *Mark-Up Pricing (Kar payı-örneğin %10 kar) 1. Wage Push Variant (sendika) 2. Supply-Shock Variant (arz şoku-petrol, doğalgaz, enerji gibi, kur (ithal ürünler)) 3. Complexities (demand-full may converts to the cost push and they may fallow each other)...
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- Spring '11