The simultaneous occurrence of high inflation and high unemployment is called
A)Reflation.
B)Stagflation.
C)Deflation.
D)Depression.

Question

Quizplus · Accepted Answer

Stagflation is characterized by a situation in which inflation and unemployment are both high. This represents a difficult challenge for policymakers because traditional solutions for reducing inflation, such as reducing aggregate demand, may actually exacerbate the unemployment situation.

The Simultaneous Occurrence of High Inflation and High Unemployment Is