Explore BrainMass
Share

Explore BrainMass

    Inflation, stagflation, recession, depression and expansion

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    In 200 word or less: Inflation, stagflation, recession, depression, expansion, and contraction are commonly used terms in economics and the media. What do these terms mean? In your explanation, discuss how some of these terms are related?

    © BrainMass Inc. brainmass.com October 10, 2019, 4:23 am ad1c9bdddf
    https://brainmass.com/economics/unemployment/inflation-stagflation-recession-depression-and-expansion-458651

    Solution Preview

    Inflation- is "an ongoing rise in the general level of prices quoted in units of money" (White, n.d.). This may occur during the period of depression.

    Stagflation - refers to "high inflation and high unemployment occurring simultaneously" (Investorwords.com).

    Recession - refers to "decline in the Gross Domestic Product (GDP) for two or more consecutive quarters ... the time when business activity has reached its peak and starts to fall until the time when business activity bottoms out" (Moffat, 2012).

    Depression - "is a severe downturn that lasts several years" (Amadeo, 2012).

    Expansion - "A speedup in the pace of economic activity" (Moffat, 2012). This is manifested by an increase in investments and ...

    Solution Summary

    The solution differentiates inflation, stagflation, recession, depression, expansion, and contraction. It discusses also the interrelationship of these concepts.

    $2.19