Question

Explain how both inflation and deflation hurt the economy

Answer 1

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While deflation refers to a decrease in the prices of goods and services in aneconomy, disinflation is when inflationincreases at a slower rate. When different companies selling similar goods or services compete, there is a tendency to lower prices to have an edge over the competition

Answer 2

While deflation refers to a decrease in the prices of goods and services in aneconomy, disinflation is when inflationincreases at a slower rate. When different companies selling similar goods or services compete, there is a tendency to lower prices to have an edge over the competition