Borrowers gains from inflation.
Inflation is the rate of growth in costs over a given time frame. Inflation is normally a huge measure, including the general increase in expenses or the boom in the cost of dwelling in a country.
Inflation is the charge of growth in costs over a given time frame. Inflation is typically a huge degree, together with the overall increase in prices or the boom in the cost of living in a country.
At the same time as high inflation is typically considered harmful, some economists trust that a small amount of inflation can help power economic growth. the opposite of inflation is deflation, a state of affairs where costs tend to say no. The Federal Reserve's goal is a 2% inflation fee, based totally on the consumer price Index (CPI).
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the attached pictures show the explanation
Answer:
increase both aggregate supply and real output.
Explanation:
A rise in productivity makes it possible for each and every firm to rise the greater amount of output. due to this aggregate supply will rise which will lead to increase in the real output.
Also the rise in productivity increase the aggregate supply and the AS curve would be shifted to right that rise the real output but reduce the level of the price in the new equilibrium output level
Therefore the above represent the answer