Demand pull in?ation can be caused by:
A) the widespread usage of new cost-saving production technology.
B) an increase in the level of capital used in production.
C) a large number of ?rms exiting the market.
D) an increase in consumption by households.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when the demand for goods and services exceeds the supply, leading to higher prices. An increase in consumption by households directly leads to higher demand, potentially causing demand-pull inflation.

Demand Pull In?ation Can Be Caused By