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yan [13]
3 years ago
5

Demand pull inflation when the demand for goods

History
1 answer:
Aleks04 [339]3 years ago
7 0

Answer:

Demand-pull inflation exists when aggregate demand for a good or service outweigh aggregate supply. It starts with an increase in total consumer demand. Sellers meet such an increase with more supply. But when additional supply is unavailable, sellers raise their prices. That results in demand-pull inflation.

This is commonly described as "too much money chasing too few goods."

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