Why is disinflation so costly for an economy? Are there ways to reduce these costs?

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Macroeconomics

ISBN: 9781464110375

4th Edition

Authors: Paul Krugman, Robin Wells

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Question Posted: Feb 28, 2024 04:01 AM

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Why is disinflation so costly for an economy? Are there ways to reduce these costs?

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Disinflation a sustained decrease in the rate of inflation can be costly for an economy in several ways 1 Increased unemployment As overall price leve...View the full answer

Macroeconomics

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