Inflation tends to ________ during the expansion phase of the business cycle and ________ during the recession phase of the business cycle.

Question

Quizplus · Accepted Answer

During the expansion phase of the business cycle, economic activity and demand for goods and services increase, which can lead to increased prices and inflation. Conversely, during the recession phase, economic activity slows down and demand decreases, leading to lower prices and a decrease in inflation.

Inflation Tends to ________ During the Expansion Phase of the Business