Which among the following is used for a situation of “Too much money chasing too few goods?
Q. Which among the following is used for a situation of “Too much money chasing too few goods?
Answer: Demand Pull Inflation
Notes: Demand-pull inflation refers to the inflation from rapid growth in aggregate demand and when excess demand causes ‘too much money chasing too few goods.’ This generally happens when an economy is growing at a faster rate.

 

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