Stagflation is a term that usually describes an economy experiencing:
A)low inflation.
B)low inflation coupled with low growth.
C)high inflation with a recessionary gap.
D)low unemployment rates and low inflation rates.

Question

Quizplus · Accepted Answer

Stagflation refers to a situation where an economy experiences high inflation and stagnant economic growth, often accompanied by high unemployment, which is indicative of a recessionary gap.

Stagflation Is a Term That Usually Describes an Economy Experiencing