Which of the following would lead to stagflation?
A)demand-pull inflation
B)cost-push inflation
C)both of the above
D)none of the above

Question

Which of the following would lead to stagflation?
A)​demand-pull inflation
B)​cost-push inflation
C)​both of the above
D)​none of the above

Quizplus · Accepted Answer

Cost-push inflation can lead to stagflation because it involves rising prices (inflation) due to increasing costs of production (such as wages and raw materials) which can simultaneously slow economic growth by reducing demand, leading to higher unemployment and stagnant economic conditions.

Which of the Following Would Lead to Stagflation