which is associated with a negative gdp gap
It is sometimes expressed as too much spending (or money) chasing too few goods.. Cost-push inflation describes prices rising because of increases in per unit costs of production. Cost-push inflation is most likely to be associated with a negative GDP gap, as the rising production costs reduce spending and output.Demand-pull inflation is more likely to occur with a positive GDP gap, because actual GDP will exceed its potential only when aggregate spending is strong and rising.t is sometimes expressed as too much spending (or money) chasing too few goods.. Cost-push inflation describes prices rising because of increases in per unit costs of production. Cost-push inflation is most likely to be associated with a negative GDP gap, as the rising production costs reduce spending and output.