Which of the following best characterizes stagflation?
A) rising unemployment together with economic growth
B) deflation coupled with a decline of the money supply
C) deficits coupled with rising unemployment
D) rising unemployment and inflation rates

Question

Which of the following best characterizes stagflation?  
A) rising unemployment together with economic growth 
B) deflation coupled with a decline of the money supply 
C) deficits coupled with rising unemployment 
D) rising unemployment and inflation rates

Quizplus · Accepted Answer

Stagflation is characterized by the combination of rising unemployment and inflation rates. It is a rare and detrimental economic phenomenon where the economy experiences a stagnant growth rate, high inflation, and high unemployment at the same time.

Which of the Following Best Characterizes Stagflation