Demand pull inflation can aptly be described as
- inflation induced by rising costs of production
- reduction in government expenditure
-
persistent rise in prices due to increase in expenditure
- massive importation of goods from a country with hyper inflation
The correct answer is: C
Explanation
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.