GCEEconomicsInflation and Unemployment2024

Which of the following best describes demand-pull inflation?

AA rise in the general price level caused by an increase in the cost of production
BA rise in the general price level caused by excess demand over available supplyCORRECT
CA fall in the general price level resulting from a decrease in consumer spending
DA rise in the general price level caused by a reduction in the money supply
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Why the answer is B, and why the others tempt you.
Demand-pull inflation occurs when aggregate demand in an economy exceeds aggregate supply, pulling prices upward. It is often described as 'too much money chasing too few goods.' Option A describes cost-push inflation, while C and D are incorrect characterisations of inflation.
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