Economy, asked by hritiktirkey072934, 5 months ago

why inflation is good for economic​

Answers

Answered by yogitasharma1910
1

Answer:

When the economy is not running at capacity, meaning there is unused labor or resources, inflation theoretically helps increase production. More dollars translates to more spending, which equates to more aggregated demand. More demand, in turn, triggers more production to meet that demand.

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