An economic condition characterized by high unemployment and excessive inflation is called
A) stagflation.
B) recessionary downturn.
C) expansionary growth.
D) depression.

Question

Quizplus · Accepted Answer

Stagflation is a situation where there is a stagnant economy or slow growth accompanied by high inflation rates and high unemployment. A recessionary downturn refers to a decline in economic activity, but does not necessarily have to be accompanied by high inflation rates. Expansionary growth refers to an increase in economic activity, which also does not necessarily have to be accompanied by high inflation rates. A depression is a severe and prolonged downturn in economic activity with high levels of unemployment, but does not necessarily have to be accompanied by high inflation rates.

An Economic Condition Characterized by High Unemployment and Excessive Inflation