Stagflation is associated with
A) neither cost-push inflation or demand-pull inflation because it is a different concept altogether.
B) both types of inflation.
C) cost-push inflation.
D) demand-pull inflation.

Question

Quizplus · Accepted Answer

Stagflation is a combination of high inflation and economic stagnation. It is caused by cost-push inflation, where businesses face rising production costs and therefore increase prices, while at the same time demand for goods and services is weak. Therefore, stagflation is associated with cost-push inflation.

Stagflation Is Associated with