Question

Inflation is an economic problem because it a. leads inevitably to unemployment. b. makes prices less useful as signals for resource allocation. c. leads to recession. d. results in rapid increases in the money supply.

Answer 1

The correct answer is : B

Step-by-step explanation:

Inflation happens when prices have a general increase in the value of money falls. It affects the cost of living as well as the prices of things in a country's economy. When inflation is high, it is not good for the economy of the country because the value of money will be reduced.