ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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demand pull where the AD is less than AS and so prices are pulled down to meet consumer demand
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demand pull where optimism is high, world demand for exports is high and AD is greater than AS
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demand pull where the demand for labour pushes up the cost of production and creates inflationary pressure
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demand pull inflation where overseas people are repaired to pay more for australian exports because they are in such high demand-like the mining boom
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Detailed explanation-1: -Demand-pull inflation explained Yet when demand outpaces supply, sellers will raise prices as a result. This price hike is called demand-pull inflation, and it’s the most common type of inflation in economics.
Detailed explanation-2: -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-3: -Too little supply or too much demand can mean higher prices for everybody. Demand-pull inflation is when growing demand for goods or services meets insufficient supply, which drives prices higher.
Detailed explanation-4: -Demand-pull inflation occurs when aggregate demand for goods and services in an economy rises more rapidly than an economy’s productive capacity. One potential shock to aggregate demand might come from a central bank that rapidly increases the supply of money.