Which of the following statements seems to be verified by economic data?
A)Inflation tends to rise during recessions.
B)Inflation adjusts within three months to output gaps.
C)Inflation tends to fall during expansions.
D)It can take over a year for inflation to adjust to output gaps.

Question

Quizplus · Accepted Answer

Economic data often shows that inflation can be slow to adjust to output gaps, sometimes taking over a year, due to factors like price stickiness and delayed policy effects.

Which of the Following Statements Seems to Be Verified by Economic