Which of the following best describes stagflation? a. rising unemployment together with economic growth b. deflation coupled with a decline of the money supply c. deficits coupled with rising unemployment d. rising unemployment and inflation rates inflation coupled with balance of trade deficits

Question

Shyanne Dougherty

Business

21 April, 20:14

Which of the following best describes stagflation? a. rising unemployment together with economic growth b. deflation coupled with a decline of the money supply c. deficits coupled with rising unemployment d. rising unemployment and inflation rates inflation coupled with balance of trade deficits

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Answers (1)

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Joaquin Cook · Answer 1

D. Rising unemployment and inflation rates inflation coupled with balance of trade deficits

Explanation:

In economics, stagflation is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. It presents a dilemma for economic policy, since actions intended to lower inflation may exacerbate unemployment