When the economy is experiencing demand-pull inﬂation, its real GDP tends to be rising.

Name: When the economy is experiencing demand-pull inﬂation, its real GDP tends to be rising.
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Demand-pull inflation occurs when aggregate demand exceeds the economy's ability to produce goods and services at its current capacity. This typically occurs during times of economic growth and expansion, when real GDP is rising.

When the Economy Is Experiencing Demand-Pull Inﬂation, Its Real GDP