inflation caused by increase in demand can be curbed by
Answer Details
When the demand for goods and services increases, this can lead to an increase in prices, which results in demand-pull inflation. One way to curb this type of inflation is by increasing the level of output of goods and services, as this will help to meet the increased demand and reduce the pressure on prices. By increasing the production of goods and services, the supply of goods and services will increase, and this will help to reduce the demand for goods and services, which will in turn reduce the pressure on prices. Therefore, increasing the level of output is an effective way to curb inflation caused by an increase in demand.