In the recovery phase of the inflation-unemployment cycle, a falling inflation rate means that the price level is rising by smaller and smaller percentages.

Question

Quizplus · Accepted Answer

In the recovery phase, as the economy begins to recover from a recession, the inflation rate typically falls. This means that the rate at which prices are increasing is slowing down, and the price level is rising at smaller and smaller percentages. Therefore, the statement is true.

In the Recovery Phase of the Inflation-Unemployment Cycle, a Falling