Inﬂation caused by an increase in total spending is referred to as
A) cost-push inﬂation.
B) anticipated inﬂation.
C) demand-pull inﬂation.
D) hyperinﬂation.

Question

Quizplus · Accepted Answer

Demand-pull inflation is caused by an increase in total spending or demand for goods and services, leading to an increase in prices. It is often the result of an expansionary fiscal or monetary policy. Cost-push inflation is caused by an increase in production costs, anticipated inflation is when people expect prices to rise and adjust their actions accordingly, and hyperinflation is an extreme form of inflation where prices rise rapidly and out of control.

Inﬂation Caused by an Increase in Total Spending Is Referred