Answered

Typically, low inflation is a sign of
о
a healthy economy because it results from a steady rise in demand.
a healthy economy because it results from a steady rise in supply.
a struggling economy because it results from a steady fall in demand.
a struggling economy because it results from a steady fall in supply.



Answer :

GinnyAnswer

Final answer:

Inflation is the rise in average prices indicating a strong economy, while deflation, signifying economic struggles, results in falling prices.


Explanation:

Inflation is an increase in the average level of prices, while deflation is a decrease in the average level of prices. In an economy with inflation, most prices rise, indicating demand has outpaced supply. In contrast, deflation, caused by falling demand or a decrease in money supply, can lead to economic struggles and is generally considered more concerning than inflation.


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