List Two Costs of Inflation

question 28

Short Answer

List two costs of inflation.

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Definitions:

Agricultural Subsidies

Financial assistance granted by the government to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Trade Deficit

A trade deficit occurs when a country's imports of goods and services exceed its exports, leading to a negative balance of trade.

Protectionist Trade Policies

Measures implemented by a government to restrict or regulate international trade, with the aim of protecting domestic industries from foreign competition.

Japan

An East Asian island country known for its technological advancements and rich cultural heritage.