Inflation caused by an increase in aggregate spending is referred to as:
A) Cost-push inflation
B) Anticipated inflation
C) Demand-pull inflation
D) Hyperinflation

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs due to a increase in aggregate demand, resulting in an increase in prices. This can be caused by factors such as increased consumer spending, increased investment spending or increased government spending. Cost-push inflation, on the other hand, is caused by an increase in production costs, leading to a decrease in supply and an increase in prices. Anticipated inflation is when people expect inflation to occur and take actions accordingly, leading to inflation. Hyperinflation is a very rapid and high increase in the overall price level of goods and services in an economy, which can result in the collapse of the economy.

Inflation Caused by an Increase in Aggregate Spending Is Referred