what is the cause of demand - pull inflation?\no prices rise due to high consumer interest.\no prices rise…
what is the cause of demand - pull inflation?\no prices rise due to high consumer interest.\no prices rise after production costs increase.\no prices rise due to a drop in product supply.\no prices rise in response to a cost - of - living increase.
Answer
Brief Explanations:
Demand - pull inflation occurs when aggregate demand in an economy outpaces aggregate supply. High consumer interest means increased demand. When demand is high relative to supply, prices rise. The other options describe cost - push inflation factors (production cost increase, product supply drop, cost - of - living increase).
Answer:
Prices rise due to high consumer interest.