Demand-pull inﬂation
A) occurs when total spending in the economy is excessive.
B) is measured differently than cost-push inﬂation.
C) can be present even during an economic depression.
D) is also called "hyperinﬂation."

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when total spending in the economy is excessive, leading to an increase in demand for goods and services that outpaces the economy's ability to supply them. This results in rising prices and inflation. Cost-push inflation, on the other hand, occurs when the cost of production increases, leading to higher prices for goods and services. Demand-pull inflation can occur even during an economic depression, as long as there is excess spending in the economy. Hyperinflation is a term used to describe extremely high levels of inflation, but it is not synonymous with demand-pull inflation.

Demand-Pull Inﬂation