Stagflation is characterised by
A)an increase in both output and the price level.
B)an economy which is growing at a rate equal to its historical average growth rate.
C)an increase in the unemployment rate and an increase in the price level.
D)a decrease in output and the price level.

Question

Quizplus · Accepted Answer

Stagflation is characterized by high inflation combined with high unemployment and stagnant demand in a country's economy, which means an increase in the unemployment rate and an increase in the price level.

Stagflation Is Characterised by