Question

Type the correct answer in the box. Spell the word correctly. Which economic condition is described? Brenda's community is suffering as the primary employer has shut down and all workers were laid off. In addition, the price level has increased significantly. This economic condition is known as

Answer 1

stagflation

Step-by-step explanation:

Stagflation is a combination of high unemployment plus high inflation and economic recession. This is the worst possible scenario that an economy can face, it is basically a "perfect storm" that destroys everything.

• Since the primary employer shut down, unemployment rose.
• The price level has increased significantly = high inflation.
• As a combination of both, economic recession will hit the community.