14
QuizMultiple Choice

Inflation and Stagflation — Quiz

Question 14 • Personal Finance and Economics

Typically, low inflation is a sign of

Answer
A
a healthy economy because it results from a steady rise in demand.
B
a struggling economy because it results from a steady fall in supply.
C
a healthy economy because it results from a steady rise in supply.
D
a struggling economy because it results from a steady fall in demand.

Explanation

A steady rise in supply lets businesses produce more goods and services without needing to raise prices as quickly. This can keep inflation low while the economy remains healthy. A steady fall in demand can also reduce inflation, but it usually signals economic weakness.

AI-written and checked against the verified answer.

Previous
Next