Demand-pull inflation can be the result of
A) a decrease in government spending.
B) an increase in net taxes.
C) a decrease in the Z factors.
D) all of the above

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when aggregate demand in an economy outpaces aggregate supply. A decrease in the Z factors, which could include factors like interest rates or other economic variables that influence spending, can lead to increased demand, thus causing demand-pull inflation.

Demand-Pull Inflation Can Be the Result of