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 (1)
High inflation usually indicates a struggling economy, particularly when wages do not rise to match increasing prices. This leads to decreased consumer purchasing power and confidence. Thus, it reflects underlying economic issues rather than healthy growth. ;
