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2006-11-29 02:20:41 · 2 answers · asked by ROD W 1 in Social Science Economics

2 answers

% Change in Growth = % change in GDP minus % inflation

If % Growth is negative we are in a recession

Thats why if they lie about the inflation rate they are lying about whether or not we are in a recession.

2006-11-29 02:29:55 · answer #1 · answered by Anonymous · 1 0

When Gross Domestic Product (GDP) goes up, it implies more goods and services have been added to the economy, and there is bound to be an increase in demand for such additions and in case the supply still cannot meet that demand, the prices have to go up and that in turn will imply inflation!

2006-11-29 03:20:30 · answer #2 · answered by Sami V 7 · 1 0

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