Which of the following is NOT a potential start of a demand-pull inflation?
A) an increase in the money wage rate
B) an increase in the quantity of money
C) an increase in government expenditure
D) an increase in exports

Question

Quizplus · Accepted Answer

Demand-pull inflation is caused by an increase in demand for goods and services, which can be triggered by an increase in the quantity of money (B), an increase in government expenditure (C), or an increase in exports (D). An increase in the money wage rate (A) is more directly related to cost-push inflation, where production costs for companies increase, leading to increased prices for consumers.

Which of the Following Is NOT a Potential Start of a Demand-Pull