What is called increased demand for a limited supply of goods and service result of which is increase in consumer prices ?
Correct answer: B. Demand pulls
- A. Demand push
- B. Demand pulls
- C. Cost pull
- D. Demand supply
Explanation
Demand-pull inflation occurs when aggregate demand rises faster than the available supply of goods and services, pushing prices upward. Option b is the intended form of “demand pull,” although its wording is grammatically incomplete.
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