Economic growth is usually coupled with ________. 1). Deﬂation2). I

Economic growth is usually coupled with ________. 1). Deﬂation2). Inﬂation3). Stagﬂation4). Hyper inﬂation

Answer»

Inflation is a good indicator of economic growth because whenever there is economic growth, the wealth of the people of the country also INCREASES.
DUE to increase in wealth, the spending increases. As the spending increases, the demand increases LEADING to increase in price causing inflation.

Term	Meaning
De?ation	Deflation OCCURS when the inflation rate falls below 0% (a NEGATIVE inflation rate
Stag?ation	situation where the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high
Hyper in?ation	Very high inflation