Real GDP Refer to the figure. If the economy is operating at full employment when its aggregate demand curve is AD2, then a further increase in consumption and investment spending will cause demand-pull inflation, and the new equilibrium output will be more than Q2. cost-push inflation, and the new equilibrium output will be less than Q2. demand-pull inflation, and the new equilibrium output will be less than Q2. cost-push inflation, and the new equilibrium output will be more than Q2.