Demand-pull inflation is more likely to occur when the economy is producing at maximum capacity.

Name: Demand-pull inflation is more likely to occur when the economy is producing at maximum capacity.
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Demand-pull inflation occurs when the demand for goods and services exceeds the current supply, which can happen when the economy is producing at maximum capacity. When demand is greater than supply, businesses can increase their prices, leading to inflation.

Demand-Pull Inflation Is More Likely to Occur When the Economy