Demand-pull inflation happens when the demand for goods

Answer

Demand-pull inflation happens when the demand for goods strongly outweighs the aggregate supply making prices to go up.

Explanation

A  demand pull inflation for a product happens when aggregate demand in an economy outpaces aggregate supply. The inflation in this case will rise with increase in real gross domestic product and fall of unemployment as the economy moves along the Philips curve. This situation can be described as "too much money chasing too few goods”

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