Describe some consequences of inflation. Describe some consequences of deflation. (Site 1)

Inflation occurs when the price of goods and services rise, while deflation occurs when those prices decrease. The balance betweenthe two economic conditions, opposites of the same coin, is delicate, and an economy can quickly swing from one condition to the other

When prices rise for energy, food, commodities, and other goods and services, the entire economy is affected. Rising prices, known as inflation, impact the cost of living, the cost of doing business, borrowing money, mortgages, corporate and government bond yields, and every other facet of the economy.

Explanation:

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