In the three phases of the inflation-unemployment cycle, a period marked by rising unemployment and high inflation is called the

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Quizplus · Accepted Answer

The stagflation phase is marked by rising unemployment and high inflation, which is a unique phenomenon as traditionally, inflation and unemployment have an inverse relationship. Therefore, option B is the correct choice. Option A, inflationary phase, generally refers to a phase with rising prices and increasing economic activity. Option C, Phillips phase, refers to the inverse relationship between inflation and unemployment, which was observed by economist A.W. Phillips. Option D, recovery phase, is marked by declining unemployment and an increase in economic activity, along with low inflation.

In the Three Phases of the Inflation-Unemployment Cycle, a Period