In an inﬂationary recession, _____.
A) national output falls but inﬂation rises
B) both national output and inﬂation rise
C) national output rises but inﬂation falls
D) both national output and inﬂation fall

Question

Quizplus · Accepted Answer

In an inflationary recession, also known as stagflation, the economy experiences a decrease in national output (recession) while inflation rates rise. This scenario combines the adverse effects of stagnation and inflation.

In an Inﬂationary Recession, _____