Question

Demand-pull inflation occurs when

A. the price of goods rises suddenly and extremely fast.
B. consumers begin purchasing more goods.
C. producers need more money to make and distribute goods.
D. the government prints more money and pushes prices up.

Answer 1

C on edge2021

Step-by-step explanation:

Answer 2

C. producers need more money to make and distribute goods.

Step-by-step explanation:

Demand-pull inflation happened when the Average Demand that exist in the market surpassed the average supply. This means that the producers are at the capacity where they're producing less goods than what the consumers willing to buy.

In order to fulfill the excess demand, the producers need more money to purchase new equipment's and hire more workers. So, they tend to increase the price of their product. The price increase from this condition is what caused the Demand-pull inflation.