Demand-pull inflation happens when the demand for a)remains very low b) shifts up and down c) matches the supply d) increases

The correct answer is D. when it increases or rises above the supply. It is bassically  when prices rise because of an imbalance in the supply and demand. To simplify, it is when people have more money then there are goods on the market. It results from strong consumer demand. When people are purchasing the same good that will cause the price to increase, and when that happens to the whole economy that is when you have this phenomenon.

Demand-pull inflation happens when the demand for goods Increases.  

Further Explanation:-

Demand and Pull inflation takes place when there is a rise in the demand which is aggregate in the outpaces of the economy in order to get supply which is aggregate. This Phenomenon involves the rise in inflation as real gross domestic product rises as well as the fall in unemployment is seen. In this process, the economy moves along with the Phillips curve. This phenomenon can also be described in easy words as when too much money is chasing very few goods. Since it is the only money that can cause inflation as money which is spent on goods and services is the only criterion from which the inflation is caused but this is not expected to happen unless the economy is at full employment level and it also exactly opposite to the cost-push inflation.  Demand-pull inflation happens when the demand for goods Increases.  

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Answer details:

Grade – High School

Subject – Economics

Chapter – Demand-Pull Inflation

Keywords – Inflation, Demand-Pull Inflation, Cost-Push inflation, Employment, Unemployment, Money, Goods, Rise, fall, Economy.  

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