Question

Demand-pull inflation occurs when there are increases in per-unit costs of production. there is a negative price gap. prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output. a. there is a negative GDP gap. b. A negative GDP gap is associated with demand-pull inflation. international inflation. cost-push inflation. output inflation. c. A positive GDP gap is associated with demand-pull inflation. output inflation. cost-push inflation. international inflation. Next

Answer 1

Step-by-step explanation:

The Demand-pull inflation occurs mainly when prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output. This deals with the real GDP rising rapidly as the unemployment falls. This is also known in the economy as "too much money chasing too few goods."