Which of the following is a change that would NOT start a demand-pull inflation?
A) an increase in exports
B) an increase in labor productivity
C) an increase in government expenditure on goods and services
D) an increase in the quantity of money

Question

Quizplus · Accepted Answer

An increase in labor productivity typically leads to more efficient production, which can lower the cost of goods and services rather than causing demand-pull inflation. Demand-pull inflation occurs when demand for goods and services exceeds supply, driving prices up. Increases in labor productivity can actually help to meet increased demand more efficiently, potentially avoiding inflationary pressures.

Which of the Following Is a Change That Would NOT