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hammer [34]
3 years ago
7

Why is the slow growth that can result from a contractionary policy a positive effect

Business
1 answer:
a_sh-v [17]3 years ago
7 0
A slow growth can be good if the economy is not stable: it provides stability. This might be especially important during the time of inflation: when an inflation happens, a quick growth might lead to huge inflation instead and the economy will not grow stronger as a result. In this case a slow, rather than a fast growth, will allow economy to actually grow stronger from the current growth.
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