Because demand-pull inflation is caused by an increase in the demand for output, economists say that this type of inflation is actually good for the economy.

Question

Quizplus · Accepted Answer

Demand-pull inflation, while indicating rising demand, can lead to negative effects such as reduced purchasing power and potential overheating of the economy, making it not inherently good for the economy.

Because Demand-Pull Inflation Is Caused by an Increase in the Demand