A combination of high inflation and recession,usually resulting from a supply shock,is known as
A) hyperinflation.
B) disinflation.
C) stagflation.
D) depression.

Question

Quizplus · Accepted Answer

Stagflation is a combination of high inflation and recession. It is usually caused by a supply shock, such as an increase in oil prices, that leads to higher costs of production and decreased output. Hyperinflation refers to an extremely high rate of inflation, while disinflation refers to a slowing down of the rate of inflation. Depression is a severe economic downturn characterized by high levels of unemployment, low levels of production, and reduced economic activity.

A Combination of High Inflation and Recession,usually Resulting from a Supply