The term "stagflation" was invented in the 1970s to describe an economy experiencing both
A)deflation and economic stagnation.
B)inflation and economic stagnation.
C)high inflation and high employment.
D)high inflation and high levels of economic growth.

Question

Quizplus · Accepted Answer

Stagflation is a condition in which an economy experiences both inflation and economic stagnation, which is characterized by high unemployment and low economic growth. This phenomenon was first observed in the 1970s during a period of high inflation and weak economic growth in many developed countries. Deflation and high levels of economic growth are not features of stagflation. High inflation and high employment could be a possible combination, but stagflation involves economic stagnation, which includes high unemployment.

The Term "Stagflation" Was Invented in the 1970s to Describe