With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fiscal stimulus 3. Inflation-indexing wages 4. Higher purchasing power 5. Rising interest rates Select the correct answer using the code given below.

Demand-pull inflation occurs when aggregate demand outpaces aggregate supply; expansionary policies, fiscal stimulus, and higher purchasing power (1, 2, and 4) directly increase the money supply and consumer spending to drive this demand. Options (b), (c), and (d) are incorrect because rising interest rates (5) are a contractionary tool used to curb inflation by making borrowing expensive, while inflation-indexed wages (3) are typically associated with cost-push inflation or the wage-price spiral. The core concept tested is the identification of macroeconomic factors that shift the aggregate demand curve outward.