The inflation experienced in the United States during the late 1960s as a result of the spending on the Vietnam War is an example of:

A) hyperinflation.
B) demand-pull inflation.
C) disinflation.
D) cost-push inflation.
E) cyclical inflation.

Demand-pull inflation occurs when there is an increase in demand for goods and services that outpaces the supply. In the case of the Vietnam War spending, the government was increasing demand through its spending but the supply of goods and services was not increasing at the same rate, leading to inflation. This is different from cost-push inflation which occurs when the increase in prices is due to an increase in production costs rather than demand.