The phrase "too much money chasing too few goods" best describes

Question

Quizplus · Accepted Answer

The phrase "too much money chasing too few goods" suggests that there is excess demand for goods and services compared to their supply, which is characteristic of demand-pull inflation. Option A is incorrect because the GDP gap refers to the difference between actual GDP and potential GDP, and it is not related to inflation. Option C, inflation premium, refers to the additional amount lenders charge on a loan to protect against inflation, while Option D, cost-push inflation, refers to a situation where firms face increasing production costs that are passed on to consumers in the form of higher prices.

The Phrase "Too Much Money Chasing Too Few Goods" Best