Which of the Following Statements Best Describes the Problem of Stagflation

question 347

Multiple Choice

Which of the following statements best describes the problem of stagflation?

• A)Both inflation and economic expansion are occurring simultaneously.
• B)Prices are falling at the same time aggregate output is increasing.
• C)It is a period where both prices and unemployment increase simultaneously.
• D)There are unrestricted increases in aggregate demand along a vertical aggregate supply curve.

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Definitions:

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