Stagflation is best described as
A)increasing output and decreasing prices
B)increasing output and increasing prices
C)no change in output or prices
D)decreasing output and decreasing prices
E)decreasing output and increasing prices

Question

Quizplus · Accepted Answer

Stagflation is a condition where the economy experiences both high inflation and stagnant economic growth. This means that output or production is not increasing, or even declining, while prices are increasing. Hence, the best choice is E - decreasing output and increasing prices.

Stagflation Is Best Described as