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Though a Zero inflation is practically very difficult to achieve, very low levels of inflation are actually bad for the economy.
Inflation determines the increase in prices of goods and services in a country's economy year on year. A very low or zero inflation means a very low level of growth in prices for goods and services which in turn implies that the economic growth in the country is also very poor.
In a growing or flourishing economy the prices of goods and services increase in a steady and consistent manner year on year. This means the country's economy is growing steadily.
Inflation rates of around 5-6% are considered ideal for countries. A very low inflation is bad for the economy and at the same time a double digit inflation is also very bad for the economy.
What else can I help you with?
What is inflation and what can the government do about it?
Inflation is both good and bad for a couple of reasons. Inflation means the economy is growing strong and prices are going up. Too much inflation has a bad effect on people who are struggling to have their paychecks meet the growing prices
Why is inflation bad?
Chudir naati :D
Is inflation always bad for economy?
Inflation is certainly not always bad for economy, in fact a moderate level of inflation matching to it's growth rate is good for the country. Moderate inflation suggest demand in the system while no inflation or deflation suggest demand collapse which is much more dangerous than Inflation. For Instance US inflation is 1.5 to 2% while it's growth is 2-3%. This equation is ok. A Country having an inflation equal to it's growth rate is not bad though it is always preffered to have lower inflation and high growth rate. But it is difficult to achieve on a continuous basis. Reserve banks all over the world prefer and try hard to have moderate inflation and would worry if there is a situation of deflation. But too high inflation will make the currency of the country very weak against the major global currencies and will bring the economy to it's knees, like what happened in case of Zimbabwe.
Will incorrect tire inflation cause bad gas mileage?
bad gas mileage
Could you Describe the spilt of Germany?
Describe how bad inflation in Germany was
Why did the psi level stay at zero and still blow hot air after i added a whole can of recharger to my car?
You might have a bad leak somewhere on the ac lines
Why is inflation so bad?
One problem with inflation is redistribution. Inflation makes some people better off while it makes others worse off. The three things that cause redistribution are price effects, wealth effects, and income effects.
Why is your tire getting bald on the inside and outside?
It depends: If tire is on the front of car it can be caused by bad wheel alignment or under-inflation of the tire...on the rear by under-inflation.
my sugar level is 233 is this bad?
my sugar level is 233 is this bad
Is inflation good or bad?
Inflation has always had an indisputable benefit for the governments playing this game, since few people understand what is happening until the policy has run amuck. Unfortunately, many of the most influential people in our society support a little inflation as a good thing. They argue that it keeps the nation out of depressions and sometimes provides a Robin Hood effectInflation has always had an indisputable benefit for the governments playing this game, since few people understand what is happening until the policy has run amuck. Unfortunately, many of the most influential people in our society support a little inflation as a good thing. They argue that it keeps the nation out of depressions and sometimes provides a Robin Hood effect
Is ozone good bad or both?
The ozone is both good and bad. Good at the ground level and bad at the atmospheric level.
What is the highest level in battlefield bad company 2?
the highest level you can get in battlefield bad company 2 is level 50
