Which statement is true?A) Cost-push inflation may be summed up as too many dollars chasing too few goods.B) Profit-push inflation is a variant of demand-pull inflation.C) Demand-pull inflation usually happens during wars.D) The wage-price spiral is the basic cause of demand-pull inflation.

Question

Losseni Karamoko · Accepted Answer

Final Answer : C, Explanation :  Demand-pull inflation often occurs during wars because the demand for goods exceeds supply, leading to higher prices. This is due to increased government spending on military efforts and the redirection of resources away from consumer goods to war supplies, which reduces the availability of consumer goods and services while demand remains high or even increases.

Which statement is true?

A) Cost-push inflation may be summed up as "too many dollars chasing too few goods."
B) Profit-push inflation is a variant of demand-pull inflation.
C) Demand-pull inflation usually happens during wars.
D) The wage-price spiral is the basic cause of demand-pull inflation.

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Learning Objectives

Related questions

Which statement is true?A) Cost-push inflation may be summed up as "too many dollars chasing too few goods."B) Profit-push inflation is a variant of demand-pull inflation.C) Demand-pull inflation usually happens during wars.D) The wage-price spiral is the basic cause of demand-pull inflation.

Definitions

Learning Objectives

Learning Objectives

Related questions

Which statement is true?

A) Cost-push inflation may be summed up as "too many dollars chasing too few goods."
B) Profit-push inflation is a variant of demand-pull inflation.
C) Demand-pull inflation usually happens during wars.
D) The wage-price spiral is the basic cause of demand-pull inflation.