which scenario is an example of demand - pull inflation?\n○ consumers have more money to buy cars, and the…

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

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

Answer

Brief Explanations:

Demand - pull inflation occurs when aggregate demand in an economy is greater than aggregate supply. When consumers have more money to buy cars, the demand for cars increases. With supply remaining relatively constant in the short - run, the increased demand causes the prices of cars and car accessories to rise, which is an example of demand - pull inflation. An increase in wages is cost - push inflation. A fall in demand leading to price fall is not demand - pull inflation. A government bailout reducing costs and prices is also not demand - pull inflation.

Answer:

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