Positive response to prednisone

I have moderate/severe copd, but have had no more loss of lung function over the last six years. I did quit smoking at that time. When I get an exacerbation recently there is much more shortness of breath involved. I'm told I do not have asthma, but it runs in the family. I could hardly get up and down the stairs last exacerbation. I have been prescribed prednisone, and Doxycycline. Within three days of starting the prednisone, my breathing goes back to normal, and my oximeter shows much improved saturations. If the breathlessness goes away with an anti-inflammatory, does that mean that maybe these flares are not doing less permanent lung damage for now?

Are there some people who have more symptoms with emphysema that are caused by inflammation?