Question

IE 11-2 ... PPF Model – If this economy is presently positioned at Point S, then two of the immediate Costs of the Inflation are _______________________ . With the corresponding Business Cycle close to Area "y", there is a major Risk in this economy of moving into _______________ .

Answer 1

Instability and Insecurity.

Stagflation (Accelerating Inflation)

Step-by-step explanation:

Instability/Insecurity is an economic system whereby the rate of inflation and rate of economic growth are volatile. This usually occur when there is a considerably high unemployment in the system. Furthermore, stagflation (also known as accelerating inflation) is a condition where there is a constant increase in inflation rate and unemployment rate.