Stagflation refers to
A)Inflation resulting from lower unemployment rates.
B)The simultaneous occurrence of higher inflation and higher unemployment rates.
C)Negative inflation rates.
D)Simultaneous decreases in inflation rate and unemployment rate.

Question

Quizplus · Accepted Answer

Stagflation is the combination of high inflation and high unemployment rates. It is a rare phenomenon that goes against the traditional Phillips curve theory, which posits a trade-off between inflation and unemployment.

Stagflation Refers to