Some economists argue that higher inflation rates might be good if the consequence is greater growth in aggregate demand.

Question

Quizplus · Accepted Answer

Some economists subscribe to the theory that higher inflation rates can stimulate growth in aggregate demand, which in turn can lead to increased economic activity and job creation. However, this stance is not universally held, and there is ongoing debate among economists about the relationship between inflation and economic growth.

Some Economists Argue That Higher Inflation Rates Might Be Good