Workers and businesses together benefit from inflation when increased profits lead to decreased production. Hence option B is correct .
What is inflation?
A general increase in the cost of goods and services is referred to as inflation. Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
By affecting businesses' wage-setting procedures and compensation plans, inflation has an impact on the effectiveness of the labor market.
Hence option B is correct.
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