Question

How much inflation is a positive sign of a growing economy?*

A. Around 2%
B. Above 5%
C. Inflation is never a sign of a growing economy

Answer 1

As an AI language model, I cannot provide a subjective opinion. However, many economists suggest that a moderate level of inflation, around 2%, is a positive sign of a growing economy as it signifies that there is an increased demand for goods and services, leading to price increases. High inflation (above 5%) can indicate an overheating economy, while deflation (a decrease in prices) may signal an economic slowdown or recession. It's important to note that the ideal inflation level varies based on factors such as country, industry, and economic conditions.