A period of stagflation can be considered as part of the normal aftermath of a
A)decrease in aggregate demand.
B)period of high unemployment.
C)period of low unemployment.
D)period of inward shifting aggregate demand.

Question

Quizplus · Accepted Answer

Stagflation, characterized by high inflation and high unemployment, can occur after a period of low unemployment, which may lead to inflationary pressures as demand outpaces supply, eventually causing economic stagnation.

A Period of Stagflation Can Be Considered as Part of the Normal