Which of the following is demand-pull inflation associated with?
A) decreasing aggregate demand and lower unemployment
B) increasing aggregate demand and lower unemployment
C) decreasing aggregate demand and greater unemployment
D) increasing aggregate demand and greater unemployment

Question

Which of the following is demand-pull inflation associated with?  
A) decreasing aggregate demand and lower unemployment 
B) increasing aggregate demand and lower unemployment 
C) decreasing aggregate demand and greater unemployment 
D) increasing aggregate demand and greater unemployment

Quizplus · Accepted Answer

Demand-pull inflation occurs when aggregate demand increases, leading to an increase in overall price levels. This is often associated with lower unemployment rates as companies increase production and job opportunities to meet the higher demand.

Which of the Following Is Demand-Pull Inflation Associated With