Which of the following will cause stagflation?
A)an increase in the money supply
B)an increase in oil prices
C)a decrease in the money supply
D)technical progress

Question

Quizplus · Accepted Answer

Stagflation occurs when there is a combination of stagnant economic growth and high inflation. One of the main causes of stagflation is an increase in oil prices, as it leads to an increase in the cost of production for many goods and services. Technical progress, on the other hand, typically leads to economic growth and lower inflation. Changes in the money supply can also affect inflation, but it is not necessarily a direct cause of stagflation.

Which of the Following Will Cause Stagflation