A temporary change in the price level caused by changes in the business cycle is known as:
A) demand-pull inflation.
B) cost-push inflation.
C) demand-push inflation.
D) cost-pull inflation.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when the overall demand for goods and services in an economy increases faster than the economy's production capacity, often due to changes in the business cycle.

A Temporary Change in the Price Level Caused by Changes