Concept:Deflationary policies reduce aggregate demand to control inflation, but they also slow economic activity and can hurt employment.
Explanation:Deflationary policies include higher taxes, reduced government spending, and tighter monetary policy.
These measures lower total spending and investment in the economy.
When businesses see falling demand, they reduce production.
Lower production leads to retrenchment and fewer job opportunities.
Thus, the main disadvantage of deflationary policies is a rise in unemployment.
Answer:C. unemployment in the country