Typically, high inflation is a sign of a healthy economy because
a. it results from a fall in production costs.
b. a healthy economy because it results from a rise in consumer interest.
c. a struggling economy because wages cannot keep up with the increase in prices.
d. a struggling economy because it results from a fall in consumer interest.

Inflation is the continuous and widespread increase in prices over time. This is a bad sign for an economy as it shows that prices are rising faster than wages and this makes people poorer because they lose purchasing power. The central bank of each country must take inflationary control measures to maintain a healthy economic environment. High inflation is a warning sign and this is consensus among all economists.

ewomazinoade ewomazinoade · Answer 2 · 2022-03-23T16:14:29+01:00

Typically, high inflation is a sign of a struggling economy because wages cannot keep up with the increase in prices.

What is inflation?

Inflation is when there is a persistent rise in the general price levels in economy. When there is an inflation, there is a rapid rise in the general price of goods and services. The increase in price is usually higher than the increase in wages. This leads to a decline in welfare of the people in that economy.

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