-In the above figure, the movement from point A to B to C to D to E represents
A)demand- pull inflation resulting solely from wage responses to excess labour demand.
B)cost- push inflation resulting from persistent increases in the quantity of money.
C)demand- pull inflation resulting from persistent increases in the quantity of money.
D)cost- push inflation resulting solely from wage responses to excess labour demand.

Question

-In the above figure, the movement from point A to B to C to D to E represents
A)demand- pull inflation resulting solely from wage responses to excess labour demand. 
B)cost- push inflation resulting from persistent increases in the quantity of money. 
C)demand- pull inflation resulting from persistent increases in the quantity of money. 
D)cost- push inflation resulting solely from wage responses to excess labour demand.

Quizplus · Accepted Answer

The movement from point A to B to C to D to E represents demand-pull inflation, which is typically caused by persistent increases in the quantity of money, leading to higher demand and thus higher prices.

-In the Above Figure, the Movement from Point a to B