Which statement best compares demand-pull and cost-push inflation?

• A. Demand-pull inflation is caused by decreased supply, while cost-push inflation is caused by decreased demand.
• B. Demand-pull inflation is caused by increased supply, while cost-push inflation is caused by increased demand.
• C. Demand-pull inflation is caused by decreased production costs, while cost-push inflation is caused by decreased supply.
• D. Demand-pull inflation is caused by increased demand, while cost-push inflation is caused by increased production costs.

Answer: (D)