Which among the following is a demand pull factor causing inflation ........

Economic Affairs Inflation

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Which among the following is a demand-pull factor causing inflation?

Increase in prices of raw materials

Declining production efficiency of firms

Decrease in direct and indirect taxes

Increase in import prices

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Explanation:

The increase in aggregate demand that causes demand-pull inflation can be the result of various economic dynamics. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve.
For example, an increase in government purchases can increase aggregate demand, thus pulling up prices.
Causes of Demand Pull Inflation:
1) Consumption
2) Exchange rate
3) Government Spending
4) Expectations
5) Monetary growth