During a Recovery Phase

question 123

Multiple Choice

During a recovery phase,

• A) inflation and unemployment both increase.
• B) inflation and unemployment stay the same.
• C) inflation and unemployment both decrease.
• D) unemployment decreases and inflation increases.

---

Definitions:

Economic Infrastructure

The underlying physical and organizational structures needed for the operation of a society or economy, including transportation, communication, utilities, and services.

Buying Capacity

The ability of an individual or entity to purchase goods or services, determined by factors such as income, credit availability, and economic conditions.

Per Capita Income

The average income earned per person in a given area (city, region, country) in a specified year.

Currency Exchange Rates

The value of one currency for the purpose of conversion to another, which plays a crucial role in international trade and finance.