Why do economists worry about extended periods of deflation?
Group of answer choices
Wh...
Social Studies, 13.11.2020 21:30 angelina12386
Why do economists worry about extended periods of deflation?
Group of answer choices
When the price level falls, businesses are unable to sell their products at a price high enough to cover costs they have already incurred, putting producers at risk of failure.
When price levels drop, aggregate demand increases.
None of the above.
When price levels drop, the economy needs more time to recover compared to a period of high inflation.
Answers: 1
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