Inflation that starts because aggregate demand increases is called
A)anticipated inflation.
B)cost- push inflation.
C)demand- pull inflation.
D)political inflation.
E)unanticipated inflation.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when there is an increase in aggregate demand, meaning that consumers are demanding more goods and services than the economy can supply. As a result, prices of goods and services rise to meet the demand.

Inflation That Starts Because Aggregate Demand Increases Is Called