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What is an advantage of mild inflation according to some economists? select one:

a. it helps to close the gdp gap.

b. it reduces the inflation premium.

c. it makes it easier for firms to adjust real wages downward as demand for their products falls.

d. it reduces frictional, structural, and cyclical unemployment in the economy to make the economy more productive?

Respuesta :

I think the correct answer would be D. inflation reduces frictional, structural, and cyclical unemployment in the economy making the economy more productive. Inflation stimulates growth of the nation's economy. It drives consumption of the consumers which increases the spending levels resulting to economic growth.

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