The Simultaneous Increase in Both Inflation and Unemployment, Which Economists

question 57

True/False

The simultaneous increase in both inflation and unemployment, which economists called "stagflation," defied conventional economic thinking.

---

Definitions:

Misery Index

An economic indicator calculated by adding the unemployment rate to the inflation rate, aiming to measure the health of an economy.

Unemployment Rate

This measures the percentage of the labor force that is jobless and actively seeking employment.

Inflation

The velocity at which prices for various goods and services climb, which in turn diminishes the purchasing power.

Temporary-Help Industry

The sector of the workforce that provides temporary workers to businesses, often to fill temporary vacancies or peak workload times.