A period of stagflation is the normal aftermath of a period of
A)excess aggregate supply.
B)deficient aggregate demand.
C)excess aggregate demand.
D)high unemployment rates.

Question

Quizplus · Accepted Answer

Stagflation refers to a situation where there is both stagnant economic growth and high inflation. This can occur when there is excess aggregate demand, leading to rising prices, but also a lack of productive capacity to meet this demand, resulting in stagnant growth.

A Period of Stagflation Is the Normal Aftermath of a Period