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Unformatted text preview: Which is Better: Extremely High or Low Inflation? Period 3 7 January 2010 Word Count: 748 The article that I researched for the second economics extract was an article from an online data base called Inflation Data. This article discussed inflation in the United States and debated which was better: extremely high inflation or extremely low inflation. It is very clear that neither is ideal for the economy, but the author and editor, Tim McMahon wanted to prove that one is still better than the other. Inflation and deflation have adverse effects on the aggregate supply and demand curve. The shit however is determined by the countrys economic stability. For example, inflation will cause the aggregate supply to decrease when the economy is in a recession. Deflation will cause the aggregate demand to decrease when the economy is in a recession. These two values of aggregate supply and aggregate demand are very important because they make up the Aggregate supply and demand curves which illustrate what economic state the country is in. Right now the United States is experiencing a recession. A recession is defined by two consecutive quarters in which a countrys real GDP does not grow. Even though the recession is negatively impacting virtually every citizen in America, it is showing slow but...
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This note was uploaded on 02/05/2012 for the course ECON 101 taught by Professor Blanc during the Spring '10 term at Saddleback.
- Spring '10