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Deflationary Spiral Meaning In Bengali
Deflationary Spiral শব্দের বাংলা অর্থ কি: সঙ্কোচ সর্পিল
Deflationary Spiral
Definition
1) In economics, a deflationary spiral is a self-reinforcing cycle in which lower prices lead to lower production, lower wages, and further price declines. This can result in a downward economic spiral with falling demand and decreasing economic activity.
2) A deflationary spiral may occur when consumers and businesses delay spending in anticipation of lower prices in the future. This reduction in demand can lead to excess supply, price cuts, and further decreases in demand, creating a negative feedback loop.
3) Ultimately, a deflationary spiral can have detrimental effects on an economy, including decreased investment, rising unemployment, and a contraction in economic growth. Policymakers often seek to prevent or mitigate deflationary spirals through monetary and fiscal policies.
Examples
Deflationary Spiral Example in a sentence
1) The country found itself stuck in a deflationary spiral, with falling prices leading to reduced consumer spending.
2) The economy entered a deflationary spiral as businesses began slashing prices to attract customers.
3) The central bank struggled to prevent a deflationary spiral by implementing monetary easing measures.
4) The deflationary spiral worsened as companies laid off employees to cut costs.
5) The prolonged deflationary spiral caused widespread bankruptcies among small businesses.
6) Consumers hesitated to make purchases, fearing the deflationary spiral would continue.
7) Policy makers scrambled to find solutions to break the deflationary spiral and stimulate economic growth.
8) The deflationary spiral deepened as households postponed major purchases in anticipation of lower prices.
9) The government intervened with stimulus packages to counteract the deflationary spiral.
10) Businesses faced dwindling profits and increased debt burdens as the deflationary spiral persisted.
Synonyms
Encyclopedia
In economics, a deflationary spiral is a self-reinforcing cycle in which lower prices lead to lower production, lower wages, and further price declines. This can result in a downward economic spiral with falling demand and decreasing economic activity.
A deflationary spiral may occur when consumers and businesses delay spending in anticipation of lower prices in the future. This reduction in demand can lead to excess supply, price cuts, and further decreases in demand, creating a negative feedback loop.
Ultimately, a deflationary spiral can have detrimental effects on an economy, including decreased investment, rising unemployment, and a contraction in economic growth. Policymakers often seek to prevent or mitigate deflationary spirals through monetary and fiscal policies.
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