Stagflation is said to occur when the economy experiences both:
A) inflation and growth
B) deflation and recession
C) inflation and recession
D) deflation and growth

Question

Quizplus · Accepted Answer

Stagflation is a situation where there is a combination of high inflation and low or negative economic growth. This is a challenging scenario for policymakers as traditional tools for fighting either inflation or recession may not be effective.

Stagflation Is Said to Occur When the Economy Experiences Both