QuestionJuly 25, 2025

Demand-pull inflation is caused by: A increases in wages, pushing prices higher. B increases in aggregate demand. C decreases in aggregate supply. D consumers demanding better quality, which increases costs.

Demand-pull inflation is caused by: A increases in wages, pushing prices higher. B increases in aggregate demand. C decreases in aggregate supply. D consumers demanding better quality, which increases costs.
Demand-pull inflation is caused by:
A increases in wages, pushing prices higher.
B increases in aggregate demand.
C decreases in aggregate supply.
D consumers demanding better quality, which increases costs.

Solution
4.0(288 votes)

Answer

B increases in aggregate demand. Explanation 1. Identify the cause of demand-pull inflation Demand-pull inflation occurs when aggregate demand in an economy outpaces aggregate supply, leading to higher prices.

Explanation

1. Identify the cause of demand-pull inflation<br /> Demand-pull inflation occurs when aggregate demand in an economy outpaces aggregate supply, leading to higher prices.
Click to rate:

Similar Questions