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

If consumers attempt to buy more goods than the economy can produce, this creates excess demand. As a result, businesses increase prices to balance the supply and demand. This phenomenon is known as demand-pull inflation.

If Consumers Attempt to Buy More Goods Than the Economy