Advertisements
Advertisements
Question
Demand pull inflation may be caused by ______.
Options
increase in excise duty
increase in the price of basic raw, materials
increase in population
None of these
Solution
Demand pull inflation may be caused by increase in population.
Explanation:
Demand-pull Inflation happens when the demand for goods and services exceeds the supply. Population growth can raise demand for products and services, causing prices to rise if supply does not keep up.
RELATED QUESTIONS
What is meant by ‘Deficit Financing’?
Answer the following question in one or two sentences.
What are the two main causes of inflation?
A state where 'too much money chases too few goods' represents ______.
Cost push inflation is the consequence of ______.
Inflation is only caused by demand pull factors.
What is demand pull inflation?
What is cost push inflation?
Give two causes of demand pull inflation.
How does increased money supply affect prices in an economy?
Explain four causes of inflation.
