If consumers attempt to buy more goods than the economy can produce,the result is
A)Unemployment.
B)Demand-pull inflation.
C)Cost-push inflation.
D)The wealth effect.

Question

Quizplus · Accepted Answer

When consumers attempt to buy more goods than the economy can produce, the demand for those goods increases. This leads to demand-pull inflation, where the increased demand for goods leads to an increase in their prices. This can be a result of an increase in overall demand or a decrease in the supply of goods. Both of these factors can lead to an increase in prices.

If Consumers Attempt to Buy More Goods Than the Economy