'Demand-pull inflation' is characterised by:
A)high levels of aggregate demand, which then pulls prices down to lower levels.
B)the short-run aggregate supply curve shifting to the right.
C)rising prices and rising employment in the short-run.
D)the short-run aggregate supply curve shifting to the left.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when aggregate demand in an economy outpaces aggregate supply, leading to rising prices and typically increasing employment in the short run as firms hire more workers to meet the higher demand.

'Demand-Pull Inflation' Is Characterised By