Demand- pull inflation is an inflation that results from an initial .
A) decrease in aggregate demand
B) increase in natural resource prices
C) increase in wage rates
D) increase in aggregate demand

Question

Quizplus · Accepted Answer

Demand-pull inflation is caused by an increase in aggregate demand, which leads to an increase in prices. As demand for goods and services increases, producers raise prices to maximize profits, leading to inflationary pressures in the economy.

Demand- Pull Inflation Is an Inflation That Results from an Initial