Demand-pull inflation occurs when aggregate demand expands beyond the level necessary for full employment.

Name: Demand-pull inflation occurs when aggregate demand expands beyond the level necessary for full employment.
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When demand-pull inflation occurs, there is excessive demand for goods and services, which leads to an increase in prices. This happens when the economy is operating beyond its potential output level or full employment level.

Demand-Pull Inflation Occurs When Aggregate Demand Expands Beyond the Level