Stagflation is the combination of high inflation and low economic growth, which is contradictory to the typical relationship between these variables. It is often accompanied by high unemployment, but that is not a defining characteristic of stagflation. Therefore, option D - high inflation, despite low economic growth and high unemployment - is the best choice.

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Stagflation Is

Question 101

Multiple Choice

Stagflation is:

A) high inflation despite low economic growth and low unemployment.
B) low economic growth,despite low inflation and low unemployment.
C) high unemployment,despite low inflation and low economic growth.
D) high inflation,despite low economic growth and high unemployment.

Correct Answer: