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Too much inflation will ruin the economy but small levels of inflation will spur growth.
Inflation is very harmful to any economy because it can ruin the economy's development and growth and this is not suppose to be. Inflation is also very harmful to any economy because the people living in that economy might not survive the situation and this is when you see that an economy is affected and if nothing is done to it, it can cause an economy to collapse.
Wiki User
∙ 13y ago
Wiki User
∙ 13y agoYes high inflation always harm ppl. In high inflation there is an inc in prices of all goods. Poor become more poor. Basic necessaities are more dearer. But consequences of inflation re less harmful than deflation. Both inflation and defltion are harmful for the economy . A balance between both is a balanced econony
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Inflation is most harmful to?
Inflation is the most harmful to those that cannot afford it. Since it can cause people to lose money, it can be devastating to individuals and businesses that already have little money.
Why are fluctuations in the economy harmful?
Inflation can be harmful if individuals' incomes do not increase at the same rate as rising prices, because then the consumers buy less. Economic contraction is harmful because companies begin to lay off workers, and the economy slows down.
Is this statement Inflation is more harmful to the economy than unemployment a positive statement?
equality is more important than efficiency. Is that a positive or normative statement?
Will inflation Peter out?
inflation peter out is when inflation diminish or stops .
What refers to the persistent increase in the prices of goods and services?
inflation
Inflation is most harmful to?
Inflation is the most harmful to those that cannot afford it. Since it can cause people to lose money, it can be devastating to individuals and businesses that already have little money.
Why are fluctuations in the economy harmful?
Inflation can be harmful if individuals' incomes do not increase at the same rate as rising prices, because then the consumers buy less. Economic contraction is harmful because companies begin to lay off workers, and the economy slows down.
Is this statement Inflation is more harmful to the economy than unemployment a positive statement?
equality is more important than efficiency. Is that a positive or normative statement?
What inflation rate?
inflation
Inflation rates?
inflation
Why inflation at very high level and very low level is harmful for economy?
Inflation at a very low level will be harmful for the economy because when the low infaltion will prevail in the economy purcahsing power of the people will get high and they will demand for more goods increase in demand will leads to increase in production in the short run it will be profitable but in the long run it will be harmful for the economy because in the lon run factors of production will be repletion and will lead to lower production and leads to economic crised. in the long run factors of production decides the price of the products not the demand of the products.
Will inflation Peter out?
inflation peter out is when inflation diminish or stops .
What refers to the persistent increase in the prices of goods and services?
inflation
inflation?
rising prices
The consumers price index helps the U.S. government measure what?
inflation
What will bi the formula of inflation?
Current year's inflation - last year's inflation / last year's inflation * 100 e.g ((B-A)/A)*100
What part of speech is inflation?
Inflation is a noun.
