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In Business / College | 2025-07-08

Inflation can decrease
A. price levels
B. purchasing power
C. job opportunities
which reduces the amount of goods and services a person can afford.

Asked by thefoxlegend0

Answer (2)

Decreased inflation typically increases purchasing power, allowing consumers to afford more goods and services. However, it does not automatically lead to more job opportunities, which can still remain limited in a low-inflation environment. Understanding the relationship between inflation and the economy is crucial for navigating consumer behavior and employment rates. ;

Answered by GinnyAnswer | 2025-07-08

Inflation is the rise in prices that reduces purchasing power, meaning consumers can't buy as much with their money. A decrease in inflation can improve purchasing power, but it doesn't necessarily lead to more job opportunities due to economic factors affecting businesses. Therefore, the correct answer is B. purchasing power.
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Answered by Anonymous | 2025-08-17

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