Multiple choice

Directions: Choose the correct option for the given question: What is ‘Stagflation’?

  1. Inflation with growth

  2. Deflation with growth

  3. Inflation after deflations

  4. Inflation with depression
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Stagflation is an economic condition characterized by slow economic growth (stagnation), high unemployment, and rising prices (inflation) occurring simultaneously. This is unusual because inflation typically accompanies growth, not recession. The term emerged in the 1970s when many economies faced this problematic combination of stagnant growth with persistent inflation.

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