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 Is deflation good for the cconomy? One of the three major economic goals for an economy is to achieve a high rate of economic growth in real GDP

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 Is deflation good for the cconomy? One of the three major economic goals for an economy is to achieve a high rate of economic growth in real GDP. The others are to maintain a high level of and to maintain a _(ie low inflation) Conflicts between these three goals can arise. Efforts to increase economic growth typically lead to employment growth but can_ _the price level (ie lead to inflation). Efforts to stabilize the price level (ie fighting inflation) can_ economic growth and employment. One method for calculating real GDP (known as the expenditure approach) is to add up expenditures: GDP =C+I+G+(X-M). _is spending by households on durable goods (eg autos, appliances), semi-durable goods (eg clothing, shoes), non-durable goods (eg food, gasoline) and services (eg telecom services, haircuts). is spending by businesses on physical capital and housing construction. It does NOT refer to buying financial assets such as the purchase of stocks and bonds, which is part of savings. More physical capital increases the economy's productive capacity, contributes to higher (ie higher output per unit of labour) and increases , a measure of the standard of living, _is spending by governments on goods and services (eg education, health services, infrastructure, public services). Government purchases does not include interest payments on government debt and transfers (eg income assistance payments, employment insurance benefits) since these payments do not involve purchases of goods and services. Government transfers indirectly increase consumption by providing households with additional funds for spending. _(or exports (X) - imports (M)) is spending by foreign countries on domestic goods and services minus spending by domestic buyers on foreign goods and services. If net exports is positive, the country has a _ie exports exceed imports). If net exports is negative, it has a An increase in consumption, investment, government purchases or net exports increases real GDP.b