Which of the following is NOT a cause of demand-pull inflation?
A. Increase in government expenditure
B. Increase in consumer spending
C. Increase in cost of production
D. Increase in money supply
Answer: Option C
Solution (By JKSSB Mock Tests)
Increase in cost of production causes cost-push inflation. Demand-pull inflation arises from excess aggregate demand due to increased money supply, government spending or consumer spending.
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