Demand-pull inflation is caused by a(n)
A) increase in aggregate supply.
B) increase in aggregate demand.
C) increase in the demand for a particular good.
D) decrease in the supply of a particular good.
E) decrease in aggregate demand.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when there is an increase in aggregate demand, which causes the overall price level to rise due to excess demand for goods and services.

Demand-Pull Inflation Is Caused by A(n)