Inflation Rate money. in prices for goods and services. There is most likely low unemployment, more jobs, high GDP & Definition: A continual increase in GNP, more demand for goods, as well, in this case prices throughout a nation's we may see taxes raised. With higher taxes, people economy. Determined by the average Where in the business cycle? Expansion - most likely rapid expansion. The country is seeing a rise spend less, which equals less demand for goods and prices ma