Stagflation is a combination of __________ and ___________.
A) monetary policy;fiscal policy
B) real interest rates;nominal interest rates
C) excessive aggregate demand;excessive aggregate supply
D) higher inflation;recession
E) deflation;expansion

Question

Quizplus · Accepted Answer

Stagflation occurs when there is higher inflation and a recession simultaneously. This is because high inflation causes an increase in prices and decreases in purchasing power, while a recession leads to a decrease in production and employment. This contradictory combination can be very challenging for policymakers to address.

Stagflation Is a Combination of __________ and ___________

Stagflation Is a Combination of and _