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Which of the following could be an outcome of unexpected inflation?

O Export goods decrease.
O Foreign goods cost less.
O Worker education increases.
O Workers have more purchasing power.

User Roadmaster
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1 Answer

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An outcome of unexpected inflation could be that (A) export goods decrease.

Inflation comes in two forms: anticipated and unanticipated. Unanticipated inflation occurs as a result of events beyond our control such as natural disasters (tornadoes, earthquakes, tsunamis, etc.) and pandemics (chickenpox, smallpox, etc.). As a result of these undesired changes, more products are needed to suffice until the pandemic calms.

An example of a pandemic which required more products was the 1918 Flu Pandemic. During this global crisis, many people were in need of disinfectants, personal hygiene products, and food so they would not have to keep going outdoors around other people. Not only did companies have to increase the amount of products made, but they also had to limit how much could be exported because they needed it for themselves as well.

As an outcome of unexpected inflation, export goods decrease because more is supplied for domestic use than foreign trade.

User Timkado
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