Question

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

Answer 1

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

Step-by-step 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