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Economics IGCSEPDF 101
118 pagesrevision 46932
PDF 101
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○ An: The real burden of debt rises as money owed is worth more in real terms
than when it was borrowed, making loan repayments difficult for households and
firms.
EVALUATION:
○ Deflation caused by falling demand is severely damaging to an economy and is
extremely difficult to reverse. However, deflation caused by technological
advancements (AS-led) is beneficial, as it means higher output and lower prices
simultaneously.