If inflation stimulates production and employment,the economy experiences which of the following effects of inflation?

Question

Quizplus · Accepted Answer

Inflation can have a positive effect on the economy in the short term by stimulating production and employment. This results in increased output, which can lead to economic growth. However, in the long term, inflation can also lead to negative effects such as decreased purchasing power and higher costs of production, which may ultimately reduce efficiency. The other choices (equity and input) are not directly related to the positive effects of inflation on production and employment.

If Inflation Stimulates Production and Employment,the Economy Experiences Which of the Following