Multiple choice general knowledge

Stagflation is a situation of

  1. stagnation and deflation

  2. stagnation and recession

  3. stagnation and inflation

  4. stagnation and recovery
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Stagflation is an economic condition characterized by stagnant economic growth, high unemployment, and rising prices (inflation). This combination creates a difficult policy situation because measures to reduce inflation can worsen unemployment, and vice versa. The term gained prominence in the 1970s during the oil crisis.

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