Inflation Is Undesirable Because It

question 248

Multiple Choice

Inflation is undesirable because it

• A) arbitrarily redistributes real income and wealth.
• B) invariably leads to hyperinflation.
• C) usually is accompanied by declining real GDP.
• D) reduces everyone's standard of living.

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Definitions:

World Population

The total number of living humans on Earth at a given time, which affects resource demand, environmental sustainability, and global policies.

An Essay on the Principle of Population

A work by Thomas Malthus arguing that population growth would outpace agricultural production, leading to widespread poverty and famine unless controlled by societal measures.

Thomas Malthus

An 18th-century British economist known for his theory on population growth, which posits that population increases geometrically while food supply increases arithmetically.

Total Fertility Rates

The average number of children that would be born to a woman over her lifetime, given current birth rates.