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almond37 [142]
3 years ago
8

Which is an effect of stagflation?

Business
1 answer:
egoroff_w [7]3 years ago
3 0

Answer:

2) The value of a country's currency drops

Explanation:

Stagflation is an economic condition that is characterized by reduced economic activity, high unemployment, decline in GDP and rising prices of goods and services e.g. increase in inflation.

Increase in general price level of goods and services denotes reduction in purchasing power of the currency and thus reducing the value of the currency against other currencies.  

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Answer:

The correct answer is B

Explanation:

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The formula for computing the coefficient of price elasticity, is the factors which affect the elasticity and also elasticity is vital for business when deciding the prices.

So, Filet mignon(F) sells for $20 per pound when compared to that of hamburger (H) which sells the product for $2.30 per pound. F have the higher price as compare to the H, therefore, the coefficient of the price elasticity of demand in absolute value will be high or larger for F than that of H.

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ohaa [14]

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3 years ago
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Answer:

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