The concurrent problems of inflation and unemployment are termed:
A) depression.
B) downturn.
C) deflation.
D) demand-pull inflation.
E) stagflation.

Question

Quizplus · Accepted Answer

Stagflation refers to a situation where the economy is experiencing both inflation and unemployment at the same time, which is a rare phenomenon as inflation typically occurs when there is low unemployment and vice versa. This term is used to describe an economy stuck in a period of slow or stagnant growth, with high unemployment and rising prices.

The Concurrent Problems of Inflation and Unemployment Are Termed