Demand-pull inflation is the result of excessive pressure on the demand side of the economy.
When there is too much demand relative to supply in the overall economy,there will be demand-pull inflation.

Question

Quizplus · Accepted Answer

This statement is correct. Demand-pull inflation occurs when there is excessive pressure on the demand side of the economy, resulting in too much demand relative to supply. As a result, inflation occurs as prices are driven up due to increased demand.

Demand-Pull Inflation Is the Result of Excessive Pressure on the Demand