The correct answer is 1, 2, and 4 only. Demand-pull inflation occurs when aggregate demand in an economy outpaces aggregate supply, leading to price increases. Expansionary policies and fiscal stimulus increase government spending and consumer demand, thereby fueling inflation. Similarly, higher purchasing power—often resulting from wage increases or lower taxes—creates additional demand for goods and services, contributing to demand-pull inflation. In contrast, rising interest rates (point 5) typically dampen consumer spending and investment by making borrowing costlier, while inflation-indexing wages (point 3) can create upward pressure on wages but is more a response to inflation rather than a direct cause of increased demand.