Which type of inflation occurs when the demand for goods and services is greater than the supply?
A) demand-push
B) cost-push
C) demand-pull
D) supply-side

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when there is too much demand for goods and services, leading to a rise in prices. This can happen, for example, when levels of employment and consumer confidence are high and people have more disposable income to spend on goods and services. As a result, businesses may struggle to keep up with demand, which can lead to higher prices.

Which Type of Inflation Occurs When the Demand for Goods