Which of the Following Would Cause Stagflation

question 59

Multiple Choice

Which of the following would cause stagflation?

• A)rising government expenditures
• B)rising oil prices
• C)a falling money supply
• D)technical progress

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Definitions:

Services

Economic activities offered by one party to another, often involving the provision of expertise or labor.

Corporation

A legal entity that is separate and distinct from its owners, recognized as a person under law, capable of rights, duties, and holding property.

Legally Separate

A term used to describe entities that are recognized as distinct legal entities under the law, capable of entering into agreements and holding assets independently.

Cost Principle

An accounting principle that states assets and services should be recorded at their original cost, not their current market value.