Answered

Typically, high inflation is a sign of:

A. a healthy economy because it results from a fall in production costs.
B. a healthy economy because it results from a rise in consumer interest.
C. a struggling economy because wages cannot keep up with the increase in prices.
D. a struggling economy because it results from a fall in consumer interest.



Answer :

GinnyAnswer

Final answer:

High inflation signifies a struggling economy due to wage-price disparities and economic instability.


Explanation:

The high inflation is a sign of a struggling economy because wages cannot keep up with the increase in prices. High inflation leads to a decrease in the purchasing power of money, which makes it difficult for individuals to maintain their standard of living as prices rise faster than incomes. Additionally, high inflation can create economic instability, leading to issues such as hoarding, social unrest, and a redistribution of wealth.


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