Question

Which of the following statements about inflation types is/are INCORRECT?
I.   Demand-pull inflation arises when aggregate demand in an economy persistently exceeds aggregate supply, drawing prices upward across sectors.
II.  Cost-push inflation is caused by a reduction in the money supply, which restricts purchasing power and raises prices.
III. Stagflation refers to a situation where high inflation coexists with high economic growth and low unemployment.

A Only I
B Only II
C Only III
D Both II and III
E Both I and III
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