When does 'stagflation' occur?
A) When inflation rises and GDP falls
B) When inflation falls and GDP rises
C) When inflation rises and GDP rises
D) When inflation falls and GDP falls

Question

Quizplus · Accepted Answer

Stagflation occurs when the economy experiences a combination of high inflation and stagnant economic growth or even a decline in GDP. This situation is characterized by a situation of high unemployment, rising prices, and slow or negative economic growth.

When Does 'Stagflation' Occur