Demand-pull inflation starts with
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

Quizplus · Accepted Answer

Demand-pull inflation begins with an increase in aggregate demand, which can be due to various factors such as increased consumer spending, government expenditure, or investment, leading to higher prices as demand outstrips supply.

Demand-Pull Inflation Starts with