Demand-pull inflation occurs during a period of time in which total spending is increasing less than total output (GDP) is increasing.

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Quizplus · Accepted Answer

Demand-pull inflation occurs when total spending increases more than total output (GDP). This leads to an increase in demand for goods and services, which in turn leads to an increase in prices. When total output is increasing more than total spending, it generally indicates a situation of economic growth and expansion, not inflation.

Demand-Pull Inflation Occurs During a Period of Time in Which