What are the signs of low inflation? check all that apply. demand steadily rises. demand steadily falls. prices continue to increase. prices continue to decrease. the economy grows in a healthy way. the economy stagnates and struggles.

The correct answers are the following

Inflation is defined as the sustained increase in the price level of an economy over time. The opposite phenomenon is called deflation.

When inflation is low, it means that the price increases happen but at a slow pace. It also reduces the severity of the crisis and recessions, as the labor market will be able to adjust faster in a downturn. Such scenario favours a sustained increase in the aggregate demand, as the price increases are not too large as to extinguish it, and therefore the economy grows in a less risky manner.

Central banks are in charge of ensuring low or moderate inflation rates.

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