Why Are Economists Concerned About Inflation

question 78

Multiple Choice

Why are economists concerned about inflation?

• A) Inflation generally causes unemployment rates to rise.
• B) Real GDP is necessarily falling when there is inflation.
• C) Inflation lowers the standard of living for people whose income does not increase as fast as the price level.
• D) Inflation increases the value of peoples' saving and encourages overspending on goods and services.

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