By using different ingredients, service techniques, and advertising we can change our product just enough to have some control over what price we charge without losing demand. Our product is still essentially the same taco, but different enough that people might prefer ours over someone else s. A stable economy is one in which the overall supply and demand are at equilibrium. It means that the producers are meeting the demands of the consumers, and the consumers have the economic means to purchase these products. If we decide to expand our taco stand while unemployment is zero, it would be difficult to hire new employees our growth would stagnate.
Inflation occurs when prices rise.
In a period of inflation, our taco prices would rise along with everything else. Our customers could no longer purchase everything they needed with the same amount of money. This upsets stability in our market because the lower consumer purchasing power means consumers can no longer purchase enough tacos and other products to optimally satisfy demand. When demand becomes lower than supply, we begin making fewer tacos. This means fewer workers are needed.