Demand-pull inflation is due to:
A) minimum wage laws.
B) labor cost increases.
C) excess total spending.
D) tax increase.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when there is excess total spending. This means that the demand for goods and services is greater than the supply, leading to an increase in prices. Minimum wage laws, labor cost increases, and tax increases can all contribute to cost-push inflation, but not demand-pull inflation.

Demand-Pull Inflation Is Due To