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Demand pull inflation can aptly be described as

...

Demand pull inflation can aptly be described as

A.

Inflation induced by rising costs of production

B.

Reduction in government expenditure

C.

Persistent rise in prices due to increase in expenditure

D.

Massive importation of goods from a country with hyper inflation

Correct answer is C

Demand pull inflation is simply a rise in price as a result of a fall in supply. It is caused by increase in the costs of raw materials or labor that affect the supply of finished goods.