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 March 4, 2021, 11:50 pm ad1c9bdddf
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 ...
The solution differentiates inflation, stagflation, recession, depression, expansion, and contraction. It discusses also the interrelationship of these concepts.