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Which of these conditions is most likely to exist when there is a general slowdown of the economy?
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A. More income and spending B. Lower inflation C. Higher production D. Lower unemployment
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B, generally people consider inflation bad but in part it's a sign of growth. The result of inflation from 1983 to 2008 the value of the dollar doubled, as did property values, while average wage stagnated. The result was the crash of 2008 when property values halved, this was caused by stagnated wages which put house ownership out of reach and the lower tax base increased national debt. The annual inflation in this period was between 2-3 %, considered good, while in 1980 the inflation was 12%.
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