Demand- pull inflation could start with
A)a rise in prices of raw materials followed by an increase in the quantity of money.
B)a decrease in exports followed by a decrease in the quantity of money.
C)an increase in government expenditure followed by an increase in the money wage rate.
D)an increase in the quantity of money followed by a decrease in the money wage rate.

Question

Quizplus · Accepted Answer

Demand-pull inflation can start with an increase in government expenditure, which boosts overall demand in the economy, leading to higher prices.

Demand- Pull Inflation Could Start with