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Inflation is a general and ongoing rise in price levels. Deflation (which happens far less often) is a general and ongoing decline in price levels.

Inflation is a general and ongoing rise in price levels. Deflation (which happens far less often) is a general and ongoing decline in price levels. And we talked about the fact that one of the three main goals of macroeconomic policy is low inflation. But why low inflation? Why do governments aim to achieve low inflation, as opposed to low deflation or a perfectly constant price level? Explain.

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