Which of the following could lead to demand-pull inflation?
A) an increase in the money wage rate
B) an increase in the quantity of money
C) a decrease in exports
D) an increase in oil prices

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when the aggregate demand in an economy outpaces aggregate supply. It can be caused by various factors, including an increase in the quantity of money. This increase in money supply can lead to more spending by consumers and businesses, thereby increasing demand and potentially leading to higher prices as the economy tries to meet this increased demand with its existing supply.

Which of the Following Could Lead to Demand-Pull Inflation