A recession ________ output in the future and inflation ________ output in the future.
A) will reduce; will not affect
B) may reduce; may reduce
C) may reduce; will increase
D) will reduce; will reduce

Question

Quizplus · Accepted Answer

A recession may reduce future output because it can lead to lower investment in capital and skills. Inflation may also reduce future output if it leads to inefficiencies in the economy, such as by distorting price signals or by reducing the real value of savings.

A Recession ________ Output in the Future and Inflation ________

A Recession Output in the Future and Inflation