What Is the Main Problem with Mild Inflation According to Some

question 136

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 towards activities to hedge against inflation

---

Definitions:

Self-love

The regard for one's own well-being and happiness, often emphasizing the importance of caring for oneself.

Self-awareness

The awareness of one's personal traits, emotions, motivations, and wishes.

Self-consciousness

An acute awareness of oneself, often marked by feelings of being watched and judged by others.

Emotional Expressions

The outward display of feelings such as happiness, anger, or fear, through facial expressions, body language, and vocal tone.