Typically, low inflation is a sign of

Low inflation is a sign of a healthy economy because it results in a steady rise in demand.

Further Explanation:

Inflation:

The increase in prices of goods and services due to increase in price index is termed as inflation. The value of currency of a country decreases in the case of inflation. Inflation is a gradual process and does not take place suddenly.  

The low rate of inflation signifies that the economy is growing and the value of currency is not decreasing. The demand increases in the economy and it then increases the economic growth.

The high rate of inflation specifies that the price index is high. The incomes are not growing as per growth in prices of commodities. Inflation is said to be lower when the wages increase according to the increase in the prices of all goods and services.

Learn more:

1.Learn more about the risk-free rate

2.Learn more about the equilibrium rate of return

3.Learn more about publicity

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Inflation  

Keywords:

Low inflation, sign, healthy economy, because, it results, steady rise, in demand, according to the rise of inflation, considered low, prices of goods and services, high unemployment and a low level of production.