Refer to the information provided in Figure 12.4 below to answer the questions that follow. Figure 12.4
-Refer to Figure 12.4. Higher price levels coupled with lower output are the result of
A) deflation.
B) stagflation.
C) economic growth.
D) deflationary growth.

Question

Refer to the information provided in Figure 12.4 below to answer the questions that follow.  Figure 12.4
-Refer to Figure 12.4. Higher price levels coupled with lower output are the result of
A) deflation. 
B) stagflation. 
C) economic growth. 
D) deflationary growth.

Quizplus · Accepted Answer

The graph in Figure 12.4 shows a combination of higher price levels (inflation) and lower output (recession) which is commonly known as stagflation.

Refer to the Information Provided in Figure 12