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In the business cycle, when is deflation most likely to occur?
A. As GDP rises
B. During a recession
C. During expansion
D. With low unemployment

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Yusra Anees
Yusra AneesLv10
18 Oct 2020

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Related questions

1) As the economy falls from the peak to the trough of the business cycle:

a. Inflationary pressures should increase as unemployment rises

b. Cyclical unemployment should increase and real GDP should decline

c. Frictional unemployment should fall because people find jobs more quickly

d. Structural unemployment will be eliminated

2) Nominal income must have fallen if real income:

a. Falls and there is inflation

b. Falls and there is deflation

c. Rises and there is inflation

d. Rises and there is deflation

What is the general relationship between the business cycle and unemployment and​ inflation?

A. During a​ recession, unemployment and inflation increase.

B. During an​ expansion, unemployment and inflation increase.

C. During an​ expansion, unemployment falls and inflation increases.

D. During a​ recession, unemployment and inflation decrease.

Say that the U.S. is in a typical expansion with a bit of inflation. Then, fiscal policy changes and T rises a bit. Which of the following is most likely?

1) Less Inflation

2) Less growth

3) Recession

4) Deflation

5) A larger increase in prices

6) A larger increase in real GDP

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