Question

    What economic condition is characterized by simultaneous

    slow economic growth, rising prices, and increasing unemployment?
    A Hyperinflation Correct Answer Incorrect Answer
    B Deflation Correct Answer Incorrect Answer
    C Disinflation Correct Answer Incorrect Answer
    D Recession Correct Answer Incorrect Answer
    E Stagflation Correct Answer Incorrect Answer

    Solution

    Stagflation is a condition in which slow economic growth (stagnation), rising prices (inflation), and rising unemployment all happen at the same time. Although it is rare for slow economic growth and high inflation to coexist, it has happened in the past, and many believe it could happen again.

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