When national output increases and the inﬂation level falls, the economy is said to be in a(n) _____.
A) inﬂationary boom
B) deﬂationary boom
C) inﬂationary recession
D) deﬂationary recession

Question

Quizplus · Accepted Answer

A deflationary boom occurs when the economy is growing (increasing national output) while the inflation level is falling, indicating that prices are decreasing during a period of economic expansion.

When National Output Increases and the Inﬂation Level Falls, the Economy