Draw a graph with a horizontal and vertical axis. The vertical axis should measure the rate of inflation and the horizontal axis should either measure the entire gross domestic product of a country if the graph is for a nationwide trend or measure an individual product or industry.
Start your aggregate supply line out horizontally, near the zero for inflation rate. As the line grows, you'll near a point where supply will meet demand; afterward, inflation will push the graph line sharply upward, because supply will swiftly outrace demand. The causes of this inflation after production has gone too high include the costs associated with overtime and the costs of raw materials after production has increased so quickly as to make those materials scarce.
Use variables such as income, wealth, access to credit and investment, among others, to figure out if your aggregate design is accurate. Finding the exact point where supply and demand intersect can be vital for keeping your business afloat. The exact numbers of this process will vary depending on the product, industry and the markets involved.