Inﬂation accompanied by falling real output and employment is known as
A) Laffer's law.
B) Okun's law.
C) stagﬂation.
D) the Phillips Curve.

Question

Quizplus · Accepted Answer

Inflation accompanied by falling real output and employment is known as stagflation. The other options are not relevant to this situation. Laffer's law is about taxation and supply-side economics, Okun's law is about the relationship between unemployment and economic growth, and the Phillips Curve is about the trade-off between inflation and unemployment.

Inﬂation Accompanied by Falling Real Output and Employment Is Known