The combination of rising inflation and higher unemployment is called:
A)recession.
B)expansion.
C)stagflation.
D)deflation.

Question

Quizplus · Accepted Answer

Stagflation is the combination of rising inflation and higher unemployment, which is different from a normal recession or expansion. In a normal recession, unemployment is high and inflation is low, while in an expansion, unemployment is low and inflation is high. Deflation refers to a general decrease in prices, which is not necessarily related to unemployment levels.

The Combination of Rising Inflation and Higher Unemployment Is Called