Stagflation is defined as:
A)decreased output accompanied by a higher price level.
B)decreased output accompanied by a lower price level.
C)increased output accompanied by a lower price level.
D)increased output accompanied by a higher price level.
E)stagnation in the rate of inflation.

Question

Quizplus · Accepted Answer

Stagflation is a phenomenon where there is a combination of high inflation and low economic growth or recession. This means there is decreased output (low economic growth) accompanied by a higher price level (inflation). Therefore, option A is the best choice.

Stagflation Is Defined As