During an Economic Recovery, the Rate of Inflation Is

Multiple Choice

During an economic recovery, the rate of inflation is

A) decreasing, and real GDP is increasing relative to potential GDP.
B) increasing, and real GDP is increasing relative to potential GDP.
C) increasing, and real GDP is decreasing relative to potential GDP.
D) constant, and real GDP is decreasing relative to potential GDP.
E) decreasing, and real GDP is decreasing relative to potential GDP.