Which of the following is NOT a cause of demand-pull inflation?
A. Increase in cost of production
B. Increase in consumer spending
C. Increase in money supply
D. Increase in government expenditure
Answer: Option A
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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