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What is the key factor that causes demand-pull inflation?
  • a)
    Decrease in money supply
  • b)
    Increase in wages
  • c)
    Increase in aggregate demand
  • d)
    Decrease in government spending
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the key factor that causes demand-pull inflation?a)Decrease in...
Demand-pull inflation is caused by an increase in aggregate demand exceeding the available output. This increase in aggregate demand can come from factors like increased consumer spending, investment, government expenditure, or net exports.
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What is the key factor that causes demand-pull inflation?a)Decrease in money supplyb)Increase in wagesc)Increase in aggregate demandd)Decrease in government spendingCorrect answer is option 'C'. Can you explain this answer?
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