Stagflation occurs when high inflation combines with high unemployment and a low level of production. low unemployment and a high level of production. a drop in buying power and a rise in workers' wages. a rise in buying power and a drop in workers' wages.

Answer;

High levels and a low level of production.

Explanation;

-Stagflation is an economic cycle in which there is a high rate of both inflation and stagnation. Inflation, when the general level of prices in an economy increases and stagnation when the production of goods and services in an economy slows down or even starts to decline.

-Therefore; it occurs when high inflation combines with high levels and a low level of production and as a result the economy drastically slow downs as money loses its buying power.

Generally speaking, Stagflation occurs when high inflation combines with "high unemployment and a low level of production", since this is a combination of the words "stagnation" and "inflation".