Demand-pull inflation is not influenced by the expectations of buyers and sellers.

Question

Quizplus · Accepted Answer

Demand-pull inflation is influenced by the expectations of buyers and sellers. When buyers expect prices to rise, they may increase their demand for goods and services, which can lead to an increase in prices. Similarly, when sellers expect prices to rise, they may increase their prices in anticipation of future inflation. Therefore, expectations play a significant role in demand-pull inflation.

Demand-Pull Inflation Is Not Influenced by the Expectations of Buyers