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Which of the following best defines the causes of demand-pull inflation? 
  • a)
    A decrease in the money supply coupled with an increase in aggregate demand. 
  • b)
    An increase in the money supply coupled with a decrease in aggregate demand. 
  • c)
    An increase in aggregate demand that exceeds aggregate supply. 
  • d)
    A decrease in aggregate demand that exceeds aggregate supply.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following best defines the causes of demand-pull inflatio...
Demand-pull inflation occurs when the aggregate demand for goods and services in an economy exceeds aggregate supply, leading to upward pressure on prices. Option C accurately describes this situation where demand outstrips supply, causing prices to rise. Options A and B describe scenarios related to monetary policy but do not specifically address the relationship between demand and supply. Option D describes a situation of deflation, where demand is lower than supply, leading to falling prices.
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Which of the following best defines the causes of demand-pull inflation?a)A decrease in the money supply coupled with an increase in aggregate demand.b)An increase in the money supply coupled with a decrease in aggregate demand.c)An increase in aggregate demand that exceeds aggregate supply.d)A decrease in aggregate demand that exceeds aggregate supply.Correct answer is option 'C'. Can you explain this answer?
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Which of the following best defines the causes of demand-pull inflation?a)A decrease in the money supply coupled with an increase in aggregate demand.b)An increase in the money supply coupled with a decrease in aggregate demand.c)An increase in aggregate demand that exceeds aggregate supply.d)A decrease in aggregate demand that exceeds aggregate supply.Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following best defines the causes of demand-pull inflation?a)A decrease in the money supply coupled with an increase in aggregate demand.b)An increase in the money supply coupled with a decrease in aggregate demand.c)An increase in aggregate demand that exceeds aggregate supply.d)A decrease in aggregate demand that exceeds aggregate supply.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following best defines the causes of demand-pull inflation?a)A decrease in the money supply coupled with an increase in aggregate demand.b)An increase in the money supply coupled with a decrease in aggregate demand.c)An increase in aggregate demand that exceeds aggregate supply.d)A decrease in aggregate demand that exceeds aggregate supply.Correct answer is option 'C'. Can you explain this answer?.
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