Which type of inflation is occurring when the demand for goods and services is greater than the supply?
A) demand-push
B) cost-push
C) demand-pull
D) supply-side

Question

Quizplus · Accepted Answer

When the demand for goods and services is greater than the supply, it leads to an increase in prices, which is known as demand-pull inflation. This type of inflation occurs when consumers have more money to spend but there are not enough goods and services available to meet their demand. This often happens during periods of economic growth or when there is an increase in government spending or investment.

Which Type of Inflation Is Occurring When the Demand for Goods