Demand-pull inflation is the result of excessive pressure on the demand side of the economy.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when aggregate demand exceeds aggregate supply, leading to an increase in overall prices in the economy. This can occur due to factors such as an increase in consumer spending, government spending, or investment. As a result, there is excess demand for goods and services, which causes prices to rise.

Demand-Pull Inflation Is the Result of Excessive Pressure on the Demand