(Consider This) Some economists believe that modest inflation,say 2-3 percent,might help reduce unemployment during recessions.What is the argument of economists who reject this idea?
A) Consumers would stop buying goods at higher prices,reducing demand,output,and employment.
B) Firms will pocket the profits resulting from higher prices and have no incentive to expand output and employment.
C) Wages and other costs would rise with the inflation,keeping firms from expanding employment.
D) Consumer spending would shift to cheaper imported goods,reducing domestic demand and employment.
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