Brainliest answer-50 points
how are money supply, inflation and recession all related?

answer in 3-5 sentences.

In normal economic circumstances, if the money supply grows faster than real output it will cause inflation.In a depressed economy (liquidity trap) this correlation breaks down because of a fall in the velocity of circulation. This is why in a depressed economy Central Banks can increase the money supply without causing inflation. This occured in US between 2008-11.  – Large increase in money supply no inflation.However, when the economy recovers and velocity of circulation rises, increased money supply is likely to cause inflation.