Stagflation describes an economy that combines

Question

Quizplus · Accepted Answer

Stagflation is a rare combination of stagnant or slow economic growth, high unemployment rates, and high inflation. Option A is the only choice that fits the description of stagflation. Option B is incorrect because low interest rates do not fit the picture of stagflation. Option C is incorrect because rapid growth is the opposite of slow or stagnant growth. Option D is also incorrect because rapid growth cannot be combined with a recession.

Stagflation Describes an Economy That Combines