What kind of inflation is caused by too much demand in the economy?
A. Demand-pull inflation
B. Cost-push inflation
C. Structural inflation
D. Regressive inflation
Asked by Merma6867
Answer (1)
The correct answer is letter A. Demand-pull inflation occurs when consumer demand exceeds supply, causing prices to rise. In the Philippines, this can happen during the Christmas season or election periods when spending increases dramatically.