Refer to the information provided in Figure 13.4 below to answer the questions that follow.
Figure 13.4
-Refer to Figure 13.4.Stagflation would cause
A)a higher price level and lower output.
B)a higher price level and higher output.
C)a lower price level and lower output.
D)a lower price level and higher output.

Question

Refer to the information provided in Figure 13.4 below to answer the questions that follow.
  Figure 13.4
-Refer to Figure 13.4.Stagflation would cause
A)a higher price level and lower output. 
B)a higher price level and higher output. 
C)a lower price level and lower output. 
D)a lower price level and higher output.

Quizplus · Accepted Answer

Stagflation refers to a situation where there is high inflation and low economic growth, resulting in a higher price level and lower output. Therefore, choice (A) is the correct answer.

Refer to the Information Provided in Figure 13