English

What is Meant by the Term Demand Pull Inflation? - Economics

Advertisements
Advertisements

Questions

What is meant by the term demand-pull inflation?

What is meant by demand pull inflation?

Solution

Demand-pull inflation: Demand-pull inflation means an inflation generated by the pressure of excess demand in the economy. If there is an excess of aggregate demand over aggregate supply, the general price level will tend to increase, which leads to inflation in the economy.

shaalaa.com
Concept for Law of demand and supply
  Is there an error in this question or solution?
2017-2018 (March) Set 1
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×