10
QuizMultiple Choice

N/A — Exam

Question 10 • Economics

Demand-pull inflation occurs when

Answer
A
consumers begin purchasing more goods.
B
the government prints more money and pushes prices up.
C
the price of goods rises suddenly and extremely fast.
D
producers need more money to make and distribute goods.

Explanation

Demand-pull inflation happens when overall demand for goods and services rises faster than businesses can supply them, putting upward pressure on prices. When consumers begin purchasing more goods, their increased demand can drive prices up, so A is correct. Producers facing higher production costs, as in D, is associated with cost-push inflation.

AI-written and checked against the verified answer.

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