Demand Pull Inflation means1. Too many Goods chasing too less money.2.

1.	Demand Pull Inflation means1. Too many Goods chasing too less money.2. Too much money chasing too few goods.3. Increase in the value of money.4. Increase in wages.
Answer» Correct Answer - Option 2 : Too much money chasing too few goods. The correct answer is Too much money chasing too few goods. Demand-Pull Inflation: Demand-pull inflation is the upward thrust on prices that reflects a shortage in supply. In the simplest form, the Demand-pull inflation is the increase in aggregate demand, by the four sections of the macroeconomy: households, businesses, governments, and foreign buyers. Economists describe it as "too much money chasing too few goods." Depicts a faster growth rate in the country. To curb it the central bank has to implement a tight monetary policy. Inflation is generally classified into three main types: Demand-Pull inflation: Demand-pull inflation is due to the increase in aggregate demand for goods than supply. Cost-Push inflation: Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials. Built-In inflation: Built-in inflation is a type of inflation that results from past events and persists in the present. It can occur when prices rise due to increases in production costs, such as raw materials and wages.

Demand Pull Inflation means1. Too many Goods chasing too less money.2. Too much money chasing too few goods.3. Increase in the value of money.4. Increase in wages.

Answer» Correct Answer - Option 2 : Too much money chasing too few goods.

The correct answer is Too much money chasing too few goods.

Demand-Pull Inflation:
- Demand-pull inflation is the upward thrust on prices that reflects a shortage in supply.
- In the simplest form, the Demand-pull inflation is the increase in aggregate demand, by the four sections of the macroeconomy: households, businesses, governments, and foreign buyers.
- Economists describe it as "too much money chasing too few goods."
- Depicts a faster growth rate in the country.
- To curb it the central bank has to implement a tight monetary policy.

Inflation is generally classified into three main types:
- Demand-Pull inflation:
  - Demand-pull inflation is due to the increase in aggregate demand for goods than supply.
- Cost-Push inflation:
  - Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials.
- Built-In inflation:
  - Built-in inflation is a type of inflation that results from past events and persists in the present.
  - It can occur when prices rise due to increases in production costs, such as raw materials and wages.