What is the definition of stagflation?
A) decreased output accompanied by a higher price level
B) decreased output accompanied by a lower price level
C) increased output accompanied by a higher price level
D) increased output accompanied by a lower price level

Question

What is the definition of stagflation?  
A) decreased output accompanied by a higher price level 
B) decreased output accompanied by a lower price level 
C) increased output accompanied by a higher price level 
D) increased output accompanied by a lower price level

Quizplus · Accepted Answer

Stagflation is a condition where there is both high inflation (increase in the general price level) and stagnant economic growth (decreased output) in a country. This means that there is a reduction in the purchasing power of individuals and businesses, leading to a decrease in economic activity.

What Is the Definition of Stagflation