Question

inflation is generally pro cyclical means

Answer 1

Explanation:

"Inflation is generally procyclical" means... a) "higher rates of inflation tend to precede periods of high. economic growth."

Answer 2

Answer:

Inflation is generally pro-cyclical means the ‘rate of inflation tends’ to rise in ‘periods of high economic growth’ and fall in ‘periods of low economic growth’.

Explanation:

Inflation is an indicator of a positive relationship between the value of a ‘good service’, or an ‘economic indicator’ and the total condition of the economy.  

Inflation goes up when capacity utilization goes up in an economy. In this situation, people will want to invest more in the economy which increases the prices and it will result in inflation.