Question

Recessions tend to be ________ by ________ the rate of inflation.

A. preceded; a decrease in the stability of

B. followed; an increase in

C. followed; a decrease in

D. neither preceded nor followed; any change in

Answer 1

Recessions are frequently followed by a decrease in the rate of inflation, as evidenced by historical patterns during periods like the Great Depression and the Great Recession of 2008-2009, where demand falls and price levels drop.

Step-by-step explanation:

The correct response to the question 'Recessions tend to be ________ by ________ the rate of inflation' is C. followed; a decrease in. Recessions are often characterized by lower inflation rates, or in some cases, deflation. Historical instances such as the Great Depression and the Great Recession of 2008-2009 are examples where this pattern can be observed. High levels of unemployment typically accompany recessions, leading to decreased demand for goods and services, which tends to pull price levels down. This reduction in the general price level of goods and services in an economy over a period of time results in a decrease in the rate of inflation. Conversely, during economic booms or strong growth periods, inflation rates generally increase.