Demand-pull inflation is caused by:
A)an increase in aggregate demand.
B)a decrease in aggregate demand.
C)an increase in short-run aggregate supply.
D)a decrease in short-run aggregate supply.

Question

Demand-pull inflation is caused by:
A)​an increase in aggregate demand.
B)​a decrease in aggregate demand.
C)​an increase in short-run aggregate supply.
D)​a decrease in short-run aggregate supply.

Quizplus · Accepted Answer

Demand-pull inflation occurs when there is an increase in aggregate demand, which can lead to an increase in prices as producers attempt to meet the higher demand.

Demand-Pull Inflation Is Caused By