Demand-pull inflation could be the result of
A) too many goods chasing too little money
B) buyers' spending on goods outrunning sellers' capacities to supply them
C) a decrease in the level of labor productivity
D) businesses raising their prices in response to cost increases

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when the demand for goods and services exceeds the supply, leading to higher prices. This is accurately described in option B, where buyers' spending on goods outpaces sellers' capacities to supply them, creating upward pressure on prices.

Demand-Pull Inflation Could Be the Result of