In which of the following conditions is the inflation rate likely to fall and the unemployment rate likely to rise?
A) hyperinflation
B) recession
C) boom
D) stagflation

Question

Quizplus · Accepted Answer

In a recession, the economy is experiencing a slowdown in economic growth, leading to lower demand for goods and services. This can lead to a decrease in prices, resulting in a fall in the inflation rate. However, the slowdown in economic activity also leads to a higher unemployment rate as firms cut back on hiring or lay off workers.

In Which of the Following Conditions Is the Inflation Rate