The word stagflation describes a situation in which a higher price level occurs simultaneously with
A)lower employment
B)lower unemployment
C)higher aggregate output
D)federal budget deficits
E)federal budget surpluses

Question

Quizplus · Accepted Answer

Stagflation is a situation where there is a combination of high inflation (i.e., higher price level) and stagnant economic growth or or high unemployment. This means that the employment levels are lower and not increasing, which is why Option A is the best choice.

The Word Stagflation Describes a Situation in Which a Higher