chaelsianne
chaelsianne chaelsianne
  • 03-11-2017
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What is the difference between inflation and deflation? Why are they BOTH bad for the economy?

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TonyH941
TonyH941 TonyH941
  • 03-11-2017
Inflation is the increase in level of prices in an economy, while deflation is a decrease of the prices.

Inflation has a higher price increase, which means there will be less purchases. Deflation has a lower prices, so the quantity or amount of the item will be out of stock quicker.
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