What do economists think about high and moderate inflation?
A) They agree that neither high inflation nor moderate inflation is very costly.
B) They agree that both high and moderate inflation are quite costly
C) They agree that high inflation is costly, but they disagree about the costs of moderate inflation.
D) They agree that moderate inflation is as costly as high inflation, but they disagree about how to measure those costs.

Question

Quizplus · Accepted Answer

Economists generally agree that high inflation is costly, as it leads to a variety of problems such as decreased purchasing power, reduced investment, and increased uncertainty. However, there is more debate about the costs of moderate inflation, as some argue that it can be beneficial for economic growth while others argue that it reduces the effectiveness of monetary policy and increases the risk of future inflation. Therefore, economists generally agree that high inflation has greater costs, but there is disagreement about the costs of moderate inflation.

What Do Economists Think About High and Moderate Inflation