What's the primary cause of demand-pull inflation?
A. The willingness of consumers to pay higher prices for the things they want
B. An increase in the available supply of the goods and services people seek the most
C. The rise of the cost of materials to produce the goods people are buying
D. An increase in wage rates to make up for the ever-increasing cost of living

Demand-pull inflation primarily stems from consumers' willingness to pay higher prices, often due to increased consumer confidence and spending. This type of inflation occurs when demand for goods and services outpaces supply. Economic factors such as low unemployment and government spending can further enhance this inflationary pressure. ;

Answered by GinnyAnswer | 2025-07-05

Demand-pull inflation happens when consumer willingness to pay for goods and services increases, causing prices to rise due to greater demand. This is often driven by consumer confidence, low unemployment, and increased government spending. The best answer is option A: The willingness of consumers to pay higher prices for the things they want.
;

Answered by Anonymous | 2025-07-06