Question

Why there might be a fall in inflation even if there is an increase in total demand?​

Answer 1

Answer:

When demand surpasses supply, higher prices are the result. This is demand-pull inflation.

A low unemployment rate is unquestionably good in general, but it can cause inflation because more people have more disposable income.

Answer 2

When demand surpasses supply, higher prices are the result. This is demand-pull inflation. A low unemployment rate is unquestionably good in general, but it can cause inflation because more people have more disposable income

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