Respuesta :
This has the same impacts as any sort of inflation, including the following: decreases in consumers' ability to make purchases, promotes expenditure to prevent the effects of further inflation, and increases borrowing costs.
What is demand-pull inflation?
In an economy, the interaction of supply and demand influences how much goods and services cost. Prices might increase for everyone if there is an imbalance between supply and demand. When an increasing demand for products or services meets a limited supply, demand-pull inflation results, which raises prices.
What is the cause of demand-pull inflation?
A rise in aggregate demand is what drives demand-pull inflation. As a result, variables like increases in government expenditure decrease in taxes, gains in wealth, an uptick in consumer confidence, and an expansion of the money supply could all contribute to demand-pull inflation.
Learn more about demand-pull inflation: https://brainly.com/question/18072639
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