which is an effect of stagflation?\ntrade with other economies increases\nthe value of a countrys currency…

which is an effect of stagflation?\ntrade with other economies increases\nthe value of a countrys currency drops\nprices for goods fall sharply and suddenly\nthe gdp rises along with production levels

which is an effect of stagflation?\ntrade with other economies increases\nthe value of a countrys currency drops\nprices for goods fall sharply and suddenly\nthe gdp rises along with production levels

Answer

Brief Explanations:

Stagflation is a period of stagnant economic growth, high - unemployment, and high inflation. High inflation erodes the purchasing power of a country's currency, causing its value to drop in the international market. Trade may not necessarily increase during stagflation. During stagflation, prices do not fall sharply as there is inflation. Also, GDP and production levels do not rise as there is economic stagnation.

Answer:

The value of a country's currency drops