Inflation as a result of too much money chasing too few goods is called _________.

runaway inflation

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creeping inflation

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demand pull inflation

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cost push inflation

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Solution

The correct option is C demand pull inflation
Demand pull inflation is when the aggregate demand in the economy rises more than the aggregate supply.

This means that the goods and services produced are lesser than the demand for them.

This is commonly described as "too much money chasing too few goods."

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Similar questions

Which economist said that inflation is too much money chasing too few goods?

List - I (Type of Inflation)	List - II (Characteristic)
A. Demand-pull Inflation	1. Initially price rises
B. Cost-push Inflation	2. Price-rise controlled by rationing and other means
C. Suppressed Inflation	3. Inflation in which prices increase as a result of increased production costs, as labour and raw materials, even when demand remains the same
D. Creeping Inflation	4. Inflation in which rising demand results in a rise in prices. 5. Fall in price of raw materials

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