Stagflation is defined as
A) the simultaneous occurrence of high inflation and high unemployment.
B) high inflation accompanied by falling interest rates.
C) declining GDP accompanied by a stable price level.
D) a persistent decline in the price level that is unresponsive to monetary and fiscal policies.

Question

Quizplus · Accepted Answer

Stagflation is characterized by the simultaneous occurrence of high inflation and high unemployment, reflecting a period where economic growth is stagnant or declining while prices continue to rise.

Stagflation Is Defined as