Which of the following best describes stagflation?
A) increasing output and decreasing prices
B) increasing output and increasing prices
C) decreasing output and decreasing prices
D) decreasing output and increasing prices

Question

Which of the following best describes stagflation?  
A) increasing output and decreasing prices 
B) increasing output and increasing prices 
C) decreasing output and decreasing prices 
D) decreasing output and increasing prices

Quizplus · Accepted Answer

Stagflation refers to a situation where there is a combination of low economic growth (or decreasing output) and high inflation (or increasing prices). This is a contradictory phenomenon as typically low economic growth is accompanied by low inflation and high economic growth is accompanied by higher inflation.

Which of the Following Best Describes Stagflation