JAMB - Economics (2024 - No. 12)
The main disadvantages of deflationary policies is
full employment in the country
increasing cost of living
unemployment in the country
improved standard of living
Explanation
Deflationary policies, which often involve reducing aggregate demand through measures like fiscal austerity or monetar tightening, can lead to a decline in economic activity and a subsequent increase in unemployment. Reduced spending an investment can result in businesses cutting back on production and workforce, leading to higher unemployment rates
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