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.

Question

Quizplus · Accepted Answer

Stagflation is characterized by both high inflation and high unemployment rates, which is the opposite of what is typically seen in a healthy economy where low unemployment is often accompanied by higher inflation. It is a difficult economic situation to address since the traditional tools used to combat inflation may exacerbate the unemployment situation. Negative inflation rates are known as deflation.

Stagflation Refers to