what is the difference between contraction and recession? *\na recession is a long contraction\na…

what is the difference between contraction and recession? *\na recession is a long contraction\na contraction is a long recession\n((most recent cpi - earlier cpi)/earlier) cpi x100 *\ncpi\nprice level\ninflation\nprice change

what is the difference between contraction and recession? *\na recession is a long contraction\na contraction is a long recession\n((most recent cpi - earlier cpi)/earlier) cpi x100 *\ncpi\nprice level\ninflation\nprice change

Answer

Brief Explanations:

In economics, a contraction is a general slow - down in economic activity. A recession is a significant, widespread, and prolonged downturn in economic activity. So a recession is a long - lasting and more severe form of contraction. The formula ((most recent CPI - earlier CPI)/earlier CPI)×100 calculates the percentage change in the Consumer Price Index (CPI), which is used to measure inflation.

Answer:

  1. A. A recession is a long contraction
  2. D. inflation