Demand-pull inflation
A)occurs when prices of resources rise, pushing up costs and the price level.
B)occurs when total spending exceeds the economy's ability to provide output at the existing price level.
C)occurs only when the economy has reached its absolute production capacity.
D)is also called cost-push inflation.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when total spending exceeds the economy's ability to provide output at the existing price level.

Demand-Pull Inflation