contestada

Demand-pull inflation:_____
a) is also called cost-push inflation.
b) occurs when total spending exceeds the economy's ability to provide output at the existing price level.
c) occurs only when the economy has reached its absolute production capacity.
d) occurs when prices of resources rise, pushing up costs and the price level.

Respuesta :

sebastiansierraocm

Answer:

b) occurs when total spending exceeds the economy's ability to provide output at the existing price level.

Explanation:

Demand-pull inflation, as the name implies, is inflation that is caused by excess demand. It occurs when the aggregate supply of the economy cannot keep up with aggregate demand, leaving people's needs for goods and services not fully satisfied.

This causes inflation because now more people are trying to buy the same amount of goods and services.

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