Demand-pull inflation could be the result of which of the following actions?
A) OPEC countries increase oil prices significantly
B) the U.S. becomes engaged in a major war
C) workers start to unionize more successfully
D) people are afraid to make major purchases as the economy heads into a recession

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when the demand for goods and services exceeds the supply, leading to higher prices. Engaging in a major war can significantly increase government spending on military and defense, boosting overall demand in the economy, which can lead to demand-pull inflation.

Demand-Pull Inflation Could Be the Result of Which of the Following