Demand-pull inflation is the result of:
A) high aggregate demand.
B) low aggregate demand.
C) favourable supply shocks.
D) adverse supply shocks.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when there is a high level of aggregate demand in an economy, causing an increase in overall prices. This is typically the result of factors such as increased consumer spending, government spending, or low interest rates which all lead to higher demand for goods and services.

Demand-Pull Inflation Is the Result Of