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Why is a high rate of inflation generally considered harmful to an economy?
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Is inflation harmful?
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.
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?
Why is a constant inflation rate less harmful to an economy than a rate that fluctuates a lot?
Because it provides stability and it is easier to predict. This makes it easier for business to plan (especially banks) what they will do in the future. Uncertainty is sometimes just as bad as a shrinking economy.
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.
Is inflation harmful?
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.
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?
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.
What can be harmful for the economy?
what can be harmful to the economy is when the non renewable resources are finished
Why is a constant inflation rate less harmful to an economy than a rate that fluctuates a lot?
Because it provides stability and it is easier to predict. This makes it easier for business to plan (especially banks) what they will do in the future. Uncertainty is sometimes just as bad as a shrinking economy.
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 lemon juice don't have warning labels?
Because lemon juice is not considered a dangerous substance - it is not generally harmful to humans.
Are deodorants harmful to the body?
Generally deodorants are not harmful to the body.
Are ultraviolet rays not a harmful disadvantage of solar energy?
Ultraviolet rays are generally considered a harmful disadvantage of solar energy. These rays cause damage to the solar panels over an extended period of time.
Is cold drinks are harmful for health?
generally the cold drinks are not harmful for health but the daily use of cold drinks can be harmful for health like sugar and other hart problems can be occur by the daily use of cold drinks
When is child labor not considered harmful?
No
