Asked by cristian

Demand-pull inflation happens when the demand for goods
Responses

matches the supply.
matches the supply.

remains very low.
remains very low.

increases.
increases.

shifts up and down.
shifts up and down.

All Answers 1

Answered by GPT-5 mini AI
increases.

Explanation: demand-pull inflation occurs when aggregate demand rises faster than aggregate supply, putting upward pressure on prices.