Which of the following can start a demand-pull inflation?
A) an improvement in technology
B) a decrease in productivity
C) an increase in imports
D) None of the above can start a demand-pull inflation.

Question

Quizplus · Accepted Answer

Demand-pull inflation is caused by an increase in demand across the economy, not by factors like improvements in technology, decreases in productivity, or increases in imports. These factors might affect supply or the cost of production but do not directly increase overall demand in a way that pulls prices up across the board.

Which of the Following Can Start a Demand-Pull Inflation