Which of the following is a potential benefit of inflation?

higher unemployment

higher prices

less government revenue

more business profits

The answer is: More business profits

Explanation:

Inflation is defined as a general increase in the price of goods and services. When inflation is too high, in the long run everyone will be worse off.

But in a very short term, some businesses can benefit from high inflation since they can sell their products at higher prices and earn larger profits. But this can only last until high inflation causes the business's inputs (materials, supplies, labor, etc.) to increase their price and the benefits will be history.

answer; ///retained

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