A combination of recession and inflation is called
A)an expansion.
B)stagflation.
C)a business cycle.
D)depression.
E)a recession.

Question

Quizplus · Accepted Answer

Stagflation is a combination of recession and inflation where there is stagnant economic growth, high unemployment, and rising prices. It is a unique and challenging economic situation because the two issues typically have opposite monetary policy responses - recession calls for expansionary policy, and inflation calls for contractionary policy.

A Combination of Recession and Inflation Is Called