Demand-pull inflation is associated with:
A) decreasing total spending (demand).
B) increasing total spending (demand).
C) decreasing costs of production (supply).
D) increasing costs of production (supply).

Question

Quizplus · Accepted Answer

Demand-pull inflation is caused by an increase in total spending (demand) in the economy, usually due to factors like low interest rates, increased consumer confidence, or expansionary monetary policy. This increase in demand leads to higher prices for goods and services as producers try to keep up with the growing demand.

Demand-Pull Inflation Is Associated With