Which of the Following Is True

Multiple Choice

Which of the following is true?

A) A recession will lead to reduced output in the future, but inflation has no effect on future output.
B) Both recessions and inflations may reduce output in the future.
C) A recession will lead to reduced output in the future, but inflation will lead to increased output in the future.
D) A recession will lead to increased output in the future, but inflation will lead to decreased output in the future.