Ask Question
13 August, 02:41

Which is an effect of stagflation?

1. Trade with other economies increases.

2. The value of a country's currency drops.

3. Prices for goods fall sharply and suddenly.

4. The GDP rises along with production levels.

+3
Answers (1)
  1. 13 August, 05:26
    0
    2) The value of a country's currency drops

    Explanation:

    Stagflation is an economic condition that is characterized by reduced economic activity, high unemployment, decline in GDP and rising prices of goods and services e. g. increase in inflation.

    Increase in general price level of goods and services denotes reduction in purchasing power of the currency and thus reducing the value of the currency against other currencies.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which is an effect of stagflation? 1. Trade with other economies increases. 2. The value of a country's currency drops. 3. Prices for goods ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers