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3 years ago

A period of very low inflation would most likely lead to

2 answers:

8 0

Inflation is an increase in price and decrease of purchasing. If inflation is low, there will be an increase in aggregate demand.

Aggregate demand is the total of all goods and services produced during a period of time. If the prices rise, consumers tend to spend less money because the prices could keep rising and they are preparing for the future.

Dafna1 [17]3 years ago

6 0

A period of very low inflation would most likely lead to an increase in the aggregate demand in the economy.

Further explanation:

Implication of low inflation rate: A low inflation rate implies that the purchasing power of a specific amount of money rises. A very low inflation period will enable consumers to have a large basket of goods and services in exchange for a specific amount of money.

Effect of low inflation on the economy: A period of low inflation rate will turn into an increase in the aggregate demand in the economy. Since a low inflation rate in the economy provides benefits to the consumers in the form of increasing their purchasing power. Thus, the aggregate demand in the economy rises. People will demand number of goods and services as a result in order to take advantage of increased purchasing power.

Therefore, the measure of aggregate demand rises in the economy as a result of a period of low inflation.

Learn more:

1. Learn more about inflation and economy

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2. Learn more about inflation

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3. Learn more about the effect of inflation

brainly.com/question/2974782

Answer details:

Grade: Senior School

Subject: Economics

Chapter: Aggregate Demand and Aggregate Supply

Keywords: a period, of low inflation, would most, likely lead to, low inflation rate, the purchasing power of a specific amount of money rises, consumers can purchase, a large basket of goods and services, the advantage of increased purchasing power, effect of low inflationary period.

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2 years ago

Which of the following statements is not accurate descriptions of the business market? Mrs. Phillip, a retail buyer for Blooming

Natali [406]

Answer:

Mrs. Phillip, a retail buyer for Bloomingdale's, does all the shopping for her family at the same store.

Explanation:

The business market is the market where you can sell your product and services to the other businesses so it can be used as a raw material for the other business in order to manufacture the products. And, the other reason is to purchased the products and resell them.

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3 years ago

Marley designs and manufactures specialty furniture. She has a number of unique products but can only produce in limited quantit

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Answer:

Marley could not meet a rapid rise in demand

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3 years ago

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Answer: Alienated follower

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3 years ago

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The name of the concept which is illustrated in this scenario about Jacob seeking deals that would benefit his own interests more than the company he is representing is known as:

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As a result of this, we can see that Jacob is self dealing because he is acting in his own interests in order to get significant bonuses in addition to his salary.

Therefore, the correct answer is option B