An increase in aggregate is more likely to lead to demand pull inflation if: Archives - Management Notes

An increase in aggregate is more likely to lead to demand pull inflation if:

August 14, 2023 by Bibisha Shiwakoti

An increase in aggregate is more likely to lead to demand pull inflation if:

An increase in aggregate is more likely to lead to demand pull inflation if:

1. Aggregate supply is perfectly elastic
2. Aggregate supply is perfectly inelastic
3. Aggregate supply is unit inelastic
4. Aggregate supply is relatively inelastic

Correct Answer: Aggregate supply is perfectly inelastic