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Review Questions with Verified
Answers | Grade A | 100% Correct
Question:
What does declining inflation rate mean?
Answer:
Prices are still rising but at a slower rate than before.
Question:
If Q3 inflation is 10% and Q4 inflation falls to 3.1%, how is inflation changing?
Answer:
It is a declining inflation rate because price growth is slowing down.
,Question:
What is the meaning of accelerated inflation rate?
Answer:
Inflation is rising faster than before (e.g., moving from 5% to 10%).
Question:
What is flat inflation rate?
Answer:
Inflation is steady and not changing significantly between periods.
Question:
What is declining inflation rate?
Answer:
Inflation is still positive but growing more slowly (e.g., falling from 10% to
3%).
Question:
How do you identify a recession using quarterly GDP forecasts?
Answer:
Look for two consecutive quarters of declining Real GDP.
, Question:
If a country's Real GDP falls for two quarters in a row, what does this indicate?
Answer:
It is likely entering a recession.
Question:
Which countries in the example were expected to enter recession?
Answer:
Countries A and B, because both had two consecutive declines in Real GDP.