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What are the signs of low inflation? Check all that apply.

Demand steadily rises.
Demand steadily falls.
Prices continue to increase.
Prices continue to decrease.
The economy grows in a healthy way.
The economy stagnates and struggles.

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palebadgworthy

The correct answers are the following

  • Demand steadily rises.
  • Prices continue to increase.
  • The economy grows in a healthy way.

Inflation is defined as the sustained increase in the price level of an economy over time. The opposite phenomenon is called deflation.

When inflation is low, it means that the price increases happen but at a slow pace. It also reduces the severity of the crisis and recessions, as the labor market will be able to adjust faster in a downturn. Such scenario favours a sustained increase in the aggregate demand, as the price increases are not too large as to extinguish it, and therefore the economy grows in a less risky manner.

Central banks are in charge of ensuring low or moderate inflation rates.

adeoladokun31

Answer:

The signs of low inflation are;

  • Demand steadily rises.
  • Prices continue to increase.
  • The economy stagnates and struggles

What is inflation?

Inflation refers to decline or reduction of purchasing power of a country currency over a period of time.

When inflation is low, it indicate that the price increases occur at low level. It also reduces the it's adverse effect and recessions, as the labor market will tend to adjust faster in a downturn. Such occurences favours a sustained increase in demand, as the price increases are not too large to terminate it.

Therefore, The signs of low inflation are;

  • Demand steadily rises.
  • Prices continue to increase.
  • The economy stagnates and struggles.

Learn more on inflation from the link below.

https://brainly.com/question/1082634

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