Damaging effects deflation on an economy
Question: What are some of the damaging effects deflation has on an economy? What would be a monetary policy prescription to reduce or eliminate deflation? How would deflation affect your business or a business you are familiar with?
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Question 1. Explain why hyperinflation has such a devastating impact on economies. Explain what it takes to stop hyperinflation. Question 2. Why is there free trade between states in the United States but not necessarily between countries?
Describe the various components of fluctuations in economy activity over time. Because economic activity fluctuates, how is long-term growth possible?
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