Inflation created by the pressure of excess demand in the market is called

Hyperinflation

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Creeping inflation

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Cost-push inflation

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Demand-pull inflation

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Solution

The correct option is D
Demand-pull inflation

Inflation created by the pressure of excess demand in the market is called demand-pull inflation because the price of a good in the competitive market is determined by the equality of demand and supply.

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Similar questions

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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