Stagflation refers to a situation in which the economy is experiencing:

A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.

Answer: B

Economics

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With perfect asset substitutability and capital mobility the domestic interest rate is equal to the foreign rate

Indicate whether the statement is true or false

Economics

Economists before Keynes assumed that equilibrium GDP occurred

a. automatically. b. only with the help of government stabilization. c. if spending was generally greater than output. d. only in socialist economies with central planning.

Economics