What Is the Main Problem with Mild Inflation, According to Some

question 144

Multiple Choice

What is the main problem with mild inflation, according to some economists?

• A) It reduces the size of the GDP gap.
• B) It leads to unanticipated deflation.
• C) It increases frictional and structural unemployment in the economy.
• D) It diverts productive time toward activities to hedge against inflation.

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Definitions:

Single-Cell Recording

A neurophysiological technique for measuring the electrical activity of individual neurons in a living organism.

Electrode

A conductor through which electricity enters or leaves an object, substance, or region.

Reuptake

The process by which neurotransmitters are taken back into the neuron that released them, terminating the neurotransmitter's action on the synapse.

Serotonin

A neurotransmitter that plays a crucial role in mood regulation, appetite control, and sleep cycles.