Demand-pull inflation could start with
A. an increase in government expenditure followed by an increase in the money wage rate.
B. an increase in the quantity of money followed by a decrease in the money wage rate.
C. a rise in prices of raw materials followed by an increase in the quantity of money.
D. a decrease in exports followed by a decrease in the quantity of money.
Answer:A
Demand-pull inflation could start with
A. an increase in government expenditure followed by an increase in the money wage rate. B. an increase in the quantity of money followed by a decrease in the money wage rate. C. a rise in prices of raw materials followed by an increase in the quantity of money. D. a decrease in exports followed by a decrease in the quantity of money.