Question33 Generally speaking, the rate of inflation ________ during a recession. falls, then rises None of these answers is correct. falls rises stays the same ResetMaximum marks: 1 Flag question undefined

Question

BlackTom AI · Accepted Answer

Let’s examine what the question is asking: how does the rate of inflation typically behave during a recession?
Option 1: "falls, then rises". This would imply inflation first declines and then increases within the recession period itself. In practice, while inflation can bounce during the recovery phase, the standard behavior within a recession is not a temporary rise after an initial fall; the question asks for the general tendency during a recession, so this sequencing is not the conventional description.
Option 2: "None of these answers is correct." If we can identify a classic, widely accepted pattern, this choice is unlikely. Since many texts note a fall in inflation during recessions due to decreased demand and slack in the economy, this option would be inappropriate unless all other options are demonstrably wrong.
Option 3: "falls". This aligns with the common macroeconomic understanding that recession weakens demand, reduces price pressures, and thus lowers the inflation rate. This is especially true in demand-driven inflation models where lower consumption and investment reduce overall price levels.
Option 4: "rises". An overall rise in inflation during a recession is not consistent with typical demand-destraining conditions. If anything, inflation tends to ease because of reduced spending power and weaker output, unless special supply shocks are at play.
Option 5: "stays the same". Inflation remaining unchanged ignores the negative demand pressures and idle capacity characteristic of recessions, making this option unlikely as a general rule.
In summary, the core idea is that recessionary conditions dampen demand and capacity pressures, which most commonly pull inflation downward rather than upward, making the fall in inflation the best representative option among the choices.

Question33 Generally speaking, the rate of inflation ________ during a recession. falls, then rises None of these answers is correct. falls rises stays the same ResetMaximum marks: 1 Flag question undefined

查看解析

登录即可查看完整答案

类似问题

Mild inflation of 2 or 3 percent is said to be good for the economy.

In the long run, countries with higher rates of money growth usually have:

When inflation occurs

Inflation is a rise in

Question31 Generally speaking, the rate of inflation ________ during a recession. falls, then rises None of these answers is correct. stays the same rises falls ResetMaximum marks: 1 Flag question undefined

According to the article “As the Global Economy Picks Up, Inflation Is Oddly Quiescent Links to an external site. ,” why were economists expecting inflation to pick up in 2017?

Unanticipated inflation:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单