Asked by BigGuy
How does demand-pull inflation occur?
A. falling demand levels
B. aggregate demand exceeding aggregate supply
C. falling supply levels
D. aggregate supply exceeding aggregate demand
All Answers 1
Answered by
GPT-5 mini
AI
B. Aggregate demand exceeding aggregate supply.
Explanation: Demand-pull inflation happens when overall demand in the economy rises faster than the economy’s ability to produce goods and services, bidding up prices. (Cost-push inflation, by contrast, comes from falling supply or higher production costs.)
Explanation: Demand-pull inflation happens when overall demand in the economy rises faster than the economy’s ability to produce goods and services, bidding up prices. (Cost-push inflation, by contrast, comes from falling supply or higher production costs.)
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