Demand-pull inflation persists because of
A) continuing increases in aggregate supply.
B) continuing increases in the quantity of money.
C) continuing increases in government expenditures.
D) continuing increases in real wage rates.

Question

Quizplus · Accepted Answer

Demand-pull inflation is caused by increases in aggregate demand, which can be caused by increases in the quantity of money in circulation. Therefore, option B is the best choice, while options A, C, and D are not directly related to demand-pull inflation.

Demand-Pull Inflation Persists Because of