Recession and inflation are the two types of internal imbalance.

Question

Quizplus · Accepted Answer

Recession and inflation are both types of internal imbalances in an economy. Recession occurs when there is a significant decline in economic activity, leading to high unemployment and decreased consumer spending. Inflation, on the other hand, occurs when there is a rise in the overall level of prices, leading to a decrease in the purchasing power of money. Both of these imbalances can have negative effects on an economy, including decreased economic growth and instability.

Recession and Inflation Are the Two Types of Internal Imbalance