ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What causes demand pull inflation?
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rise in price due to a decrease in supply
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a rise in price level due to an increase in consumption
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a rise in price due to an increase in the cost of production
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a decrease in price due to a decrease in supply
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Explanation:
Detailed explanation-1: -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-2: -Demand-pull inflation is a type of inflation that occurs when there is an increase in demand for goods and services. This type of inflation is typically caused by overall economic growth, technological innovations, or a rising inflation rate.
Detailed explanation-3: -A. A reduction in interest rates. B. An increase in costs. C. A reduction in government spending. D. An outward shift in aggregate supply.
There is 1 question to complete.