2.David`s economics(the bank of England on deflation)
Deflation:a sustained fall in the general price level
Bad deflation:fall in aggregate demand may result in a harmful consequence.Lower aggregate demand will cause business firms to cut back production.It may cause unemployment ...Also might influence a country`s economy growth...
Good deflation:a fall in price level arising from cut costs of production to stimulate cosumers expending,supply will shift to the right,therefore more and more producers may have satisfying profit from deflation.Moreover productivity likely to rise as well....so we know that the output is growing.Country`s international competitiveness increase gradually.
3.Economics teacher`s blog:
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