Question

Which of the following is a social cost of economic instability? a. inflation c. stagflation b. political instability d. decrease in the misery index Please select the best answer from the choices provided A B C D

Answer 1

The answer is : A. inflation

social cost is something that negatively affect the society as a whole. When an economy is instable, it will result in an increase in inflation rate. Which eventually lead to increases in product prices, the weakening of that country's currency, and massive unemployment