The effect of inflation on production and employment is known as

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The effect of inflation on production and employment is known as the output effects of inflation. Inflation can have a negative impact on production and employment as it increases the cost of production, reduces the purchasing power of consumers, and can lead to a decrease in demand for goods and services. This can result in businesses reducing their output and laying off workers in order to maintain their profitability. Therefore, the output effects of inflation are a crucial consideration for policymakers when implementing monetary and fiscal policies.

The Effect of Inflation on Production and Employment Is Known