A condition of concurrent high unemployment and high inflation is called
A)accommodation.
B)stop-go policy cycle.
C)stagflation.
D)a supply shock.

Question

Quizplus · Accepted Answer

The condition of concurrent high unemployment and high inflation is called stagflation. This occurs when the economy is experiencing a decrease in demand (leading to high unemployment) and an increase in the cost of production (leading to high inflation). This situation is difficult for policymakers to address, as the typical solutions for high unemployment (such as monetary or fiscal stimulus) can exacerbate inflationary pressures, while the typical solutions for high inflation (such as tightening monetary policy) can further depress employment.

A Condition of Concurrent High Unemployment and High Inflation Is