Assume that the AD curve is downward sloping, and that the AS curve is upward sloping. Demand-pull inflation is caused by the rightward shift of the AD curve, while Cost-push inflation is caused by the leftward shift of the AS curve

Assume that the AD curve is downward sloping, and that the AS curve is upward sloping. 

Demand-pull inflation is caused by the rightward shift of the AD curve, while Cost-push inflation is caused by the leftward shift of the AS curve. 

Since the end of 2021, the U.S. economy has been experiencing high inflation rates.

1.     Is it mainly a demand-pull inflation or cost-push inflation or both? Justify your answers. If you are not sure, you should do some research first, and quote the reference(s). 

2.     What are the possible events in the real world that caused the shifts of the AD curve or AS curve that contribute to the high inflation problem in 2022?  You need to explain how these non-price determinants caused the rightward shift or leftward shift of the AD curve or AS curve.  

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