Which of the following would be most likely to result in stagflation?
A)Worker training programs.
B)Growth of human capital.
C)Lower illiteracy rates.
D)Increased government regulations on industry.

Question

Quizplus · Accepted Answer

Increased government regulations on industry can lead to higher costs for businesses, which can lead to inflation. However, if the regulations stifle innovation and growth in productivity, it can also result in stagnant economic growth. The combination of inflation and stagnant growth is known as stagflation.

Which of the Following Would Be Most Likely to Result