32
QuizMultiple Choice

N/A — Exam

Question 32 • CMS 2026-2027 Economics and Personal Finance HONORS INITIAL CREDIT

Demand-pull inflation occurs when

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

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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