Which out of the following is phenomenon that leads to Demand Pull Inflation ........

Finance Inflation Trends

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Which out of the following is phenomenon that leads to Demand-Pull Inflation?

It is a situation when aggregate demand in an economy outpaces aggregate supply

It is a situation of persistent rise in inflation along with dip in growth and increase in unemployment

It is a situation caused by an increase in prices of inputs like labour, raw material etc.

It is a situation when a nation experiences very high and accelerating inflation.

Explanation:

it is a situation when either demand increases for the same level to supply leading increase in price of goods and service or the supply of goods and services decreases for the same level of demand leading to inflation. Thus demand outpaces the supply.