Question:
The Inflation occurs when the aggregate demand increases at a much higher rate than the aggregate supply is called:
The Inflation occurs when the aggregate demand increases at a much higher rate than the aggregate supply is called:
Updated On: Mar 15, 2024
- Demand pull inflation
- Demand push inflation
- Cost pull inflation
- Cost push inflation
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The Correct Option is A
Solution and Explanation
The correct answer is (A) : Demand pull inflation.
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Top Questions on Inflation
- Which of the following is excluded from headline inflation to arrive at core inflation?
- Suppose the expected rate of inflation in India is 10% whereas that in US is 4%. What is the expected rate of depreciation of Indian rupee vis-a-vis US Dollar, according to the relative purchasing power parity theory?
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Choose the correct answer from the options given below: - Assertion (A): During inflation, there is increase in money supply and rise in price level.
Reason (R): The rise in prices is due to shortage in supply of essential consumer goods.
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