Inflation that occurs when total spending is greater than the economy's ability to produce output at the existing price level is
A)anticipated inflation.
B)demand-pull inflation.
C)cost-push inflation.
D)unanticipated inflation.

Question

Quizplus · Accepted Answer

Demand-pull inflation happens when the demand for goods and services exceeds the economy's capacity to produce them, leading to higher prices.

Inflation That Occurs When Total Spending Is Greater Than the Economy's