参考答案：C

解析：

The demand pull inflation process originates with an increase in aggregate demand from either expansion of the money supply or an increase in the federal deficit when the economy is already at its full-employment level. Persistent increase in the price level (inflation)will only result if policy makers repeatedly attempt to increase real GDP above the full-employment level through monetary or fiscal expansion, although cost push inflation originates with an increase in the price of an important productive resource, it only results in inflation if the monetary authorities repeatedly increase the money supply to counteract the (short-term) reductions in real GDP that result form further increases in the price of the productive input.