WHY AD RISES DUE TO FALL IN PRICE?
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Explanation:
Demand pull inflation occurs when prices rise because something (either an increase in G, a decrease in T, or an increase in Ms) causes AD to increase. The increase in AD causes prices to rise.
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Answer:
Demand pull inflation occurs when prices rise because something (either an increase in G, a decrease in T, or an increase in Ms) causes AD to increase. The increase in AD causes prices to rise
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