The main disadvantages of deflationary policies is
- full employment in the country
- increasing cost of living
-
unemployment in the country
- improved standard of living
The correct answer is: C
Explanation
Deflationary policies, which often involve reducing aggregate demand through measures like fiscal austerity or monetar tightening, can lead to a decline in economic activity and a subsequent increase in unemployment. Reduced spending an investment can result in businesses cutting back on production and workforce, leading to higher unemployment rates