Which of the following best explains the demand-pull inflation phenomenon?
1
Inflation caused by an increase in production costs, such as wages and raw materials.
2
Inflation resulting from a decrease in the supply of goods and services.
3
Inflation that occurs when aggregate supply in an economy gets outpaced by the aggregate demand.
4
Inflation driven by the monopolistic pricing strategies of firms.
5
Inflation due to excessive printing of money by the central bank.