What is the difference between inflation and recession ?
Inflation is when prices continue to creep upward, usually as a result of overheated economic growth or too much capital in the market chasing too few opportunities. A recession is a general slowdown in economic activity over a long period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; bankruptcies and the unemployment rate rises. Inflation is generally not present during recession. In fact dis-inflation happens because if recession. Inflation may or may not effect recession, as recession is generally caused by shortage of money supply and not shortage of production. Hope this helps.