Question
Which is the cause of demand-pull inflation?
Responses
Globalization and outsourcing reduce national income.
Globalization and outsourcing reduce national income.
A shortage of workers increases production costs.
A shortage of workers increases production costs.
Foreign competition drives domestic prices higher.
Foreign competition drives domestic prices higher.
Consumers want more and more goods and services.
Responses
Globalization and outsourcing reduce national income.
Globalization and outsourcing reduce national income.
A shortage of workers increases production costs.
A shortage of workers increases production costs.
Foreign competition drives domestic prices higher.
Foreign competition drives domestic prices higher.
Consumers want more and more goods and services.
Answers
GPT-4o mini
The cause of demand-pull inflation is:
**Consumers want more and more goods and services.**
Demand-pull inflation occurs when the demand for goods and services exceeds their supply, leading to an increase in prices. This can happen due to various factors, including increased consumer spending, government spending, and investment.
**Consumers want more and more goods and services.**
Demand-pull inflation occurs when the demand for goods and services exceeds their supply, leading to an increase in prices. This can happen due to various factors, including increased consumer spending, government spending, and investment.