Asked by Hallie Adair on May 26, 2024
Verified
Assume that the number of people wanting to buy houses in your locality increases sharply.This will cause the price of houses to increase,which is an example of _____.
A) demand-pull inflation
B) cost-push inflation
C) supply-side deflation
D) credit deflation
Demand-Pull Inflation
occurs when prices rise because the demand for goods and services exceeds supply.
Price of Houses
The amount of money required to purchase residential properties, influenced by factors such as location, size, and market conditions.
Sharp Increase
A rapid and significant rise in a particular metric, such as price, volume, or value.
- Comprehend the reasons, varieties, and impacts of inflation.
Verified Answer
RG
Rachel GarciaMay 27, 2024
Final Answer :
A
Explanation :
This scenario is an example of demand-pull inflation, where an increase in demand for houses leads to an increase in prices, as the demand for housing outstrips the supply.
Learning Objectives
- Comprehend the reasons, varieties, and impacts of inflation.