Demand-pull inflation results from an increase in the aggregate demand curve in both the classical and the intermediate ranges of the aggregate supply curve, while the aggregate supply curve is fixed. True or False?

1 answer
Question:

Demand-pull inflation results from an increase in the aggregate demand curve in both the classical and the intermediate ranges of the aggregate supply curve, while the aggregate supply curve is fixed.
True or False?

Answers

Answer: TrueExplanation: Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up.

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