Which of the following best describes 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
E)inflation coupled with balance of trade deficits

Question

Quizplus · Accepted Answer

Stagflation refers to a situation where there is a combination of rising unemployment and inflation rates, which is characterized by a stagnant economy (hence the term "stagflation"). It is a rare but challenging economic phenomenon.

Which of the Following Best Describes Stagflation