What Is an Advantage of Mild Inflation According to Some

question 170

Multiple Choice

What is an advantage of mild inflation according to some economists?

• A)It helps to close the GDP gap.
• B)It reduces the inflation premium.
• C)It makes it easier for firms to adjust real wages downward as demand for their products falls.
• D)It reduces frictional, structural, and cyclical unemployment in the economy to make the economy more productive.

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Definitions:

High Self-Esteem

A confident and positive perception of oneself, marked by self-respect and self-worth.

Individual Differences

Refers to the distinct variations among people in their abilities, personalities, learning styles, and other characteristics.

Social Support

The assistance and comfort received from friends, family, and others, which is considered an important factor in dealing with stress and adversity.

Mental Ability

The capacity to perform cognitive tasks and solve problems.