Ask Question
23 January, 04:13

According to the demand-pull theory of inflation, what is responsible for inflation?

Producers increase production to meet existing demand.

Consumers have too little money to spend.

Prices tend to rise if businesses cannot produce the quantity demanded by consumers.

The supply of goods causes prices to drop.

+1
Answers (2)
  1. 23 January, 05:10
    0
    Prices tend to rise if businesses cannot produce the quantity demanded by consumers is responsible for the inflation. Demand-pull Inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply.
  2. 23 January, 05:27
    0
    The correct answer among the choices provided is the third option. Prices tend to rise if businesses cannot produce the quantity demanded by consumers. There will be changes in the competitive market according to the demand-pull theory. This will affect the valuation of new products.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “According to the demand-pull theory of inflation, what is responsible for inflation? Producers increase production to meet existing demand. ...” in 📙 History if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers