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Help ASAP please

ldentify and explain one way in which we try to deal with inflation? What are the benefits and
costs of that particular solution?

1 Answer

3 votes

Answer:

Inflation occurs when an economy grows due to increased spending. When this happens, prices rise and the currency within the economy is worth less than it was before. The currency essentially won’t buy as much as it would before. When a currency is worth less, its exchange rate weakens when compared to other currencies.

Step-by-step explanation:

There are many methods used to control inflation; some work well, while others may have damaging effects. For example, controlling inflation through wage and price controls can cause a recession and cause job losses.

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