Concept: Demand-pull inflation arises when total spending in an economy rises faster than the supply of goods.
Explanation:Demand-pull inflation is caused by an increase in aggregate demand or total expenditure.
When consumers, businesses, and the government spend more, the demand for goods and services outpaces supply.
This excess demand pushes prices upward persistently.
It is not caused by rising production costs, which describes cost-push inflation.
Thus, the best description is a persistent rise in prices due to an increase in expenditure.
Answer: C. persistent rise in prices due to increase in expenditure