538
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 538 • Career Explorations A

Demand-pull inflation occurs when

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

Explanation

Demand-pull inflation happens when overall demand for goods and services grows faster than the economy can supply them, pushing prices upward. Consumers purchasing more goods raises demand, so B is correct. Printing more money can contribute to demand-pull inflation, but it is one possible cause rather than the definition.

AI-written and checked against the verified answer.

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