8
lesson pretestMultiple Choice

Pretest

Question 8 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Demand-pull inflation happens when the demand for goods

Answer
A
matches the supply.
B
increases.
C
remains very low.
D
shifts up and down.

Explanation

Demand-pull inflation occurs when overall demand for goods and services increases faster than the economy can supply them. The increased competition for available goods can push prices upward. Therefore, the correct choice is “increases.”

AI-written and checked against the verified answer.

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