Which the following is not the reason for demand pull inflation?

Solution

An administered price is the price of a good or service as dictated by government or central authority as opposed to buyers and sellers interacting according to supply and demand. So inflation is not because of demand. Stagflation ·         When an economy faces double issues of high inflation & high unemployment simultaneously, it is termed as stagflation. ·         Example- US Economy experienced such inflation in 1970s. ·         This type of inflation falsify the conventional that exists a trade off between inflation & unemployment (expressed by Phillips Curve).