Use the figure below to answer the following question.

Figure 28.1.5
-Refer to Figure 28.1.5.Which one of the graphs in the figure represents an economy experiencing stagflation?

Question

Use the figure below to answer the following question.
  
Figure 28.1.5
-Refer to Figure 28.1.5.Which one of the graphs in the figure represents an economy experiencing stagflation?

Quizplus · Accepted Answer

Stagflation is a situation in which an economy is experiencing both high inflation and high unemployment. In Figure 28.1.5, graph (a) shows an economy with high inflation and high unemployment, so it represents an economy experiencing stagflation.

Use the Figure Below to Answer the Following Question