Which out of the following is phenomenon that leads to Demand-Pull Inflation?

Select one:
a.
It is a situation of persistent rise in inflation along with dip in growth and increase in unemployment
b.
It is a situation when aggregate demand in an economy
outpaces aggregate supply
c.
It is a situation caused by an increase in prices of inputs
like labour, raw material etc
d.
It is a situation when a nation experiences very high and
accelerating inflation.

= It is a situation when aggregate demand in an economy
outpaces aggregate supply

It is indeed a condition wherein the aggregate demand through an economy exceeds market equilibrium.

Thus the above response i.e., "option b" is correct.

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It is a situation when aggregate demand in an economy

outpaces aggregate supply.

Explanation:

Demand pull inflation occurs when the total demand of goods and services for a particular economy is more than the total supply.

This will lead to a rise in the prices of the goods as the sellers will increase prices due to the higher demand. When this occurs, a demand pull inflation has happened.

i think it is sales-oriented, but i am not sure

answer; depth;