Demand-pull inflation is due to:
A) minimum wage laws.
B) labour cost increases.
C) excess total spending.
D) tax increases.

Question

Quizplus · Accepted Answer

Demand-pull inflation is caused by excess total spending in the economy. This means that there is too much demand for goods and services relative to supply, which leads to price increases. The other options given (minimum wage laws, labour cost increases, and tax increases) may contribute to inflation in different ways, but they are not considered the primary drivers of demand-pull inflation.

Demand-Pull Inflation Is Due To