Inflation caused by increases in total intended spending is called
A) cost-push inflation.
B) the wage price spiral.
C) the crowding-out effect.
D) supply-side accommodation.
E) demand-side inflation.

Question

Quizplus · Accepted Answer

Demand-side inflation is caused by increases in total intended spending in an economy, also known as demand-pull inflation. As demand for goods and services increases, prices are pushed up due to the limited supply. This can occur due to factors such as increased government spending or consumer demand.

Inflation Caused by Increases in Total Intended Spending Is Called