Discussion
The Demand-pull inflation exists when :
Answer: B
Demand-pull inflation exists when the level of aggregate demand grows faster than the supply.
Demand-pull inflation is 'too much money chasing too few goods'. When spending by households, firms and government rises faster than the economy's capacity to produce, especially near full employment, the excess demand pulls up the general price level.
Costs rising faster than output, dearer imports and higher oil prices all describe cost-push inflation, where higher costs of production push prices up from the supply side.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development