ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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During a recession, inflation is likely to be high and rising
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -There are two connections between inflation and recession. A recession occurs when there is a general slowdown of activity across an economy. It’s connected with job loss, declining investments, falling stock prices and a shrinking GDP. Periods of inflation don’t tend to cause recessions in and of themselves.
Detailed explanation-2: -In economics, stagflation or recession-inflation is a situation in which the inflation rate is high or increasing, the economic growth rate slows, and unemployment remains steadily high.
Detailed explanation-3: -Do recessions bring down inflation? Yes. Since 1948, a recession knocked down the rate of inflation 100% of the time.
There is 1 question to complete.