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Why Is Deflation Such a Problem

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Why is deflation such a problem?


Definitions:

Forward Buying

Purchasing large quantities of goods when prices are lower to use or sell over time, often to hedge against price increases.

Marginal Subcontracting Cost

The additional cost incurred for outsourcing a unit of production or service beyond the normal capacity.

Layoff Cost

The expenses incurred by a company when reducing its workforce, including severance pay, benefits continuation, and potential legal costs.

Hiring And Training Cost

(new definition) Reflects the financial outlays involved in attracting, selecting, and enhancing the skills of employees to fulfill organizational roles.

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