Question

which scenario is an example of demand - pull inflation? consumers have more money to buy cars, and the prices of cars and car accessories rise as a result. an increase in workers wages raises the production cost of cars, and car prices rise as a result. the demand for cars falls as consumers have less disposable income, and car prices fall as a result. a government bailout helps car manufacturers lower their costs, and car prices fall as a result.

Explanation:

Demand - pull inflation occurs when aggregate demand in an economy is greater than aggregate supply. When consumers have more money to buy cars, the increased demand for cars and car - accessories causes their prices to rise, which is a classic example of demand - pull inflation. An increase in workers' wages causing cost - push inflation, a fall in demand causing deflation, and a government bailout reducing costs and prices are not examples of demand - pull inflation.

Answer:

Consumers have more money to buy cars, and the prices of cars and car accessories rise as a result.