Stagflation occurs when the price level ________ and real GDP ________.
A) falls; increases
B) falls; decreases
C) rises; decreases
D) rises; increases

Name: Stagflation occurs when the price level ________ and real GDP ________. A) falls; increases B) falls; decreases C) rises; decreases D) rises; increases
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Question

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Stagflation is characterized by rising price levels (inflation) and decreasing real GDP, indicating an economy experiencing inflation but not growth.

Stagflation Occurs When the Price Level ________ and Real GDP