What causes demand pull inflation?

      

Highlight the causes of demand pull inflation in an economy.

  

Answers


Maurice
(i) Increase in wages and salaries.

(ii) Increase in population.

(iii) Natural causes such as natural disasters.

(iv) Consumers increasing their expenditure.

(v) Autonomous increase in government expenditure.

(vi) Credit creation by commercial banks

(vii) Increase in export or fall in imports.

(viii) Rise in money supply in an economy.
maurice.mutuku answered the question on July 11, 2017 at 06:41


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