Answer: remain moderate.

In the recovery phase of the business cycle, inflation typically remains moderate. This is because economic activity is picking up, but not yet at a pace that would cause significant price pressures. Options B and C are incorrect as they describe inflation behaviors associated with other phases of the business cycle: acceleration is more characteristic of the slowdown phase, while deceleration (with a lag) is typical during the contraction phase.

Author: LeetQuiz Editorial Team