Question
In the years after the Great Recession, the inflation rate has been
a. volatile.
b. relatively low.
c. diminishing over time.
d. stabilized at 0 .
a. volatile.
b. relatively low.
c. diminishing over time.
d. stabilized at 0 .
Ask by Curry Brooks. in the United States
Mar 21,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
In the years after the Great Recession, the inflation rate was relatively low.
Solution
To analyze the inflation rate in the years after the Great Recession, let’s consider the known conditions:
- The Great Recession occurred from late 2007 to mid-2009.
- Following this period, various economic indicators, including inflation, were observed.
Now, let’s evaluate the options:
a. Volatile: Inflation rates did experience fluctuations in the years following the recession, but they were not excessively erratic.
b. Relatively low: After the recession, inflation rates were generally lower compared to historical averages, especially during the immediate recovery period.
c. Diminishing over time: While inflation rates did decrease initially, they did not consistently diminish over the entire period.
d. Stabilized at 0: Inflation did not stabilize at 0; there were periods of positive inflation.
Based on this analysis, the most accurate description of the inflation rate in the years after the Great Recession is:
b. relatively low.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution Bonus Knowledge
In the years following the Great Recession, the inflation rate has generally been relatively low, leading many to believe that deflation could be a serious threat. Central banks, particularly the Federal Reserve in the United States, implemented various monetary policy measures to stimulate the economy, including keeping interest rates at historically low levels to spur spending and investment.
However, as the economy began to recover, some experts warned that the combination of low unemployment and persistent economic growth might lead to future inflationary pressures. Understanding these economic patterns can help individuals and businesses better prepare for varying economic conditions, particularly in planning budgets or investing wisely during fluctuating markets.
