PRC-3 · Chapter 18 · Question 31 of 33
An economy inexplicably suffers from high inflation and high unemployment simultaneously, stagnating growth while prices soar. This highly destructive economic condition is specifically known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Stagflation
Explanation
Stagflation is an economic anomaly characterized by stagnant economic growth, high unemployment, and concurrently high inflation.
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