Whenever the general level of prices rises because of continual increases in aggregate demand, we say that the economy is experiencing
A) supply-side inflation.
B) monetary stagflation.
C) demand-side inflation.
D) aggregate supply shock.

Question

Quizplus · Accepted Answer

Demand-side inflation is when there is a continual increase in aggregate demand which causes a rise in the general level of prices. This is caused due to an increase in consumer spending and investment.

Whenever the General Level of Prices Rises Because of Continual