Unanticipated _____ is detrimental to economic growth.

Question

Quizplus · Accepted Answer

Unanticipated inflation or deflation can disrupt the economy by impacting production, investment, employment, and consumption. Inflation can decrease the purchasing power of consumers, discourage savings, and result in higher interest rates, which can negatively affect investment in businesses. On the other hand, deflation can reduce investment and spending, causing declines in output, production, and employment. Thus, both inflation and deflation can be detrimental to economic growth.

Unanticipated _____ Is Detrimental to Economic Growth