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During a Recession, the Rate of Inflation Is

Question 92

Multiple Choice

During a recession, the rate of inflation is


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

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