What does stagflation refer to?
A) a combination of rising unemployment and rising trade deficits
B) a combination of high unemployment and rising prices
C) high, rapidly increasing inflation
D) a combination of rising trade deficits and rising federal government budget deficits

Question

What does stagflation refer to?  
A) a combination of rising unemployment and rising trade deficits 
B) a combination of high unemployment and rising prices 
C) high, rapidly increasing inflation 
D) a combination of rising trade deficits and rising federal government budget deficits

Quizplus · Accepted Answer

Stagflation refers to a combination of high unemployment and rising prices. It is a situation where the economy experiences a stagnant or slow growth rate (leading to high unemployment) along with inflationary pressures (leading to rising prices).

What Does Stagflation Refer To