Economics · Inflation

The type of inflation that occurs when aggregate demand increases at a much higher rate than aggregate supply is called:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Hyperinflation
2Structural inflation
3Cost-push inflation
4Demand-pull inflation✓

Correct answer

Demand-pull inflation

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The type of inflation that occurs when aggregate demand increases at a much higher rate than aggregate supply is called:

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