BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Demand-pull inflation is a type of inflation that is caused when there is an increase in consumer demand for goods and services. This causes prices to go up as businesses try to meet the increased demand because of a lack of needed supply. This is historically the most common cause of inflation.

Detailed explanation-2: -Government spending: Government spending increases demand for certain products. Government policies like tax decreases also have an impact, because they give consumers a higher discretionary income for spending on goods and services. If this outpaces supply, it causes demand-pull inflation.

Detailed explanation-3: -Demand pull inflation arises when the aggregate demand becomes more than the aggregate supply in the economy. Cost pull inflation occurs when aggregate demand remains the same but there is a decline in aggregate supply due to external factors that cause rise in price levels.

Detailed explanation-4: -Because people are spending more money on restaurants, the suppliers will raise their prices. Other possible reasons for cost pull inflation could be: An increase in production or costs of production costs due to technological innovation. This can cause price inflation.