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WAEC Economics 1992 Question 36

Question 36

Money and Inflation

Inflation caused by an increase in demand is known as

  1. A.cost-push inflation
  2. B.hyper-inflation
  3. C.demand-pull inflation
  4. D.creeping inflation
  5. E.runaway inflation.
Show the answer and explanation

Answer: C (demand-pull inflation)

Explanation

When rising demand pulls prices up, it is demand-pull inflation.