Inflation Questions

Which scenario is an example of demand-pull inflation?

A) Consumers have more money to buy cars, and the prices of cars and car parts rise as a result.

B) An increase in workers’ wages raises the production cost of cars, and car prices rise as a result.

C) The demand for cars falls as consumers have less disposable income, and car prices fall as a result.

D) A government bailout helps car manufacturers lower their costs, and car prices fall as a result.

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