Demand pull inflation result from ?
Correct answer: B. consumer business and government demand for goods and services in excess of an economy's capacity to produce
- A. demand for government spending on public goods goes due to lack of financial backup through tax collection
- B. consumer business and government demand for goods and services in excess of an economy's capacity to produce
- C. a shortage of demand for goods and services in excess of supply during depression
- D. demand for public goods is greater than demand for consumer goods
Explanation
Demand-pull inflation occurs when total consumer, business, and government demand exceeds the economy's capacity to produce goods and services. This excess demand pushes prices upward.
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