Business, 15.07.2019 02:00, chancler

Demand-pull inflation occurs when the price of goods rises suddenly and extremely fast. consumers begin purchasing more goods. producers need more money to make and distribute goods. the government prints more money and pushes prices up.

Answers: 2

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Demand-pull inflation occurs when consumers begin purchasing more goods. Demand for goods and services are going up. It is when the demand outpaces the economy's ability to provide goods & services. Prices increase because of an increase in aggregate spending not fully matched by an increase in aggregate production.

answered: malikbryant2002

The option B is correct.

Demand pull inflation occurs when the consumer begin purchasing more goods.

Further Explanation:

Demand pull inflation:

Demand pull inflation means the consumer demanded more product than the supply of the good. The supply of the good is limited. In this case good’s price slightly increases because the demand for the product is high.

Law of Demand:

According to this law 'when the price of the goods increases, quantity demanded will fall and when the price of the goods decreases, the quantity of good demanded will increase while other things remain constant.

Justification for the correct and incorrect

When the price of the goods rises suddenly and extremely fast: This option is incorrect.

This statement is not correct. Demand pull inflation does not mean the price of the goods rises extremely, it can be slightly changes.

Consumer begins purchases more good: This option is correct.

This statement is true. The consumer start purchases more good, it puts the pressure on the demand.

Producer needs more money to make and distribute goods: This option is incorrect.

The demand of the product does not affect with this. The producer increases the cost in this situation.

The government prints more money and pushes price up: This option is incorrect.

When the government prints excess cash and pushes price up, this process is known as money supply.

Learn more:

1.Learn more about demand and type of goods

2.Learn more about effect on demand

3.Learn more about demand curve

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Demand pull inflation

Keywords: demand pull inflation, law of demand, price of goods, extremely fast, consumers, begin, producers need more, distribute goods, prints more money, pushes prices up.

answered: Guest

Ihope this answers your question

answered: Guest

1) d 2) d 3) c 4) d 5) a 6) c 7) a 8) b 9) a 10) a 11) d 12) c 13) c 14) d 15) a 16) a 17) d 18) c 19) c 20) c

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Demand-pull inflation occurs when the price of goods rises suddenly and extremely fast. consumers be...