The term stagflation referred specifically to the concurrent conditions of

Question

Quizplus · Accepted Answer

Stagflation is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. It presents a dilemma for economic policy, since actions designed to lower inflation may exacerbate unemployment, and vice versa. Choice C, "high consumer prices and economic stagnation," accurately describes this condition by highlighting both the aspect of high prices (inflation) and economic stagnation, which implies slow growth and potentially high unemployment.

The Term Stagflation Referred Specifically to the Concurrent Conditions of