Demand-pull inflation is most pronounced during a recession (as opposed to the recovery phase of the business cycle).

Question

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Demand-pull inflation occurs when demand for goods and services exceeds the supply, leading to an increase in prices. During a recession, there is generally a decrease in demand due to lower consumer spending and investment. Therefore, demand-pull inflation is not typically pronounced during a recession but may occur during the recovery phase of the business cycle when demand starts to increase again.

Demand-Pull Inflation Is Most Pronounced During a Recession (As Opposed