Which of the following is NOT a potential start of a demand- pull inflation?
A)An increase in the quantity of money
B)An increase in the money wage rate
C)An increase in government expenditure
D)An increase in exports

Question

Quizplus · Accepted Answer

An increase in the money wage rate is more likely to cause cost-push inflation rather than demand-pull inflation, as it increases production costs rather than increasing aggregate demand.

Which of the Following Is NOT a Potential Start of a Demand-