Can "Stagflation" Occur as Part of a Business Cycle Triggered

question 163

Multiple Choice

Can "stagflation" occur as part of a business cycle triggered by a change in nominal GDP growth?

• A)It is the first thing that happens after GDP growth accelerates,before expected inflation has changed much.
• B)It happens after the cyclical peak in output from a GDP growth acceleration,and expected inflation is catching up to actual inflation.
• C)It is the first thing that happens after GDP growth decelerates,before expected inflation has changed much.
• D)It is part of the business cycle triggered by supply shocks,but not by demand shocks.

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Definitions:

Transfer

The act of moving assets, liabilities, or ownership rights from one entity or account to another.

Share Capital

The funds that a company raises through the issuance of shares to investors, representing ownership in the company.

Fair Value

The cost at which an asset could be sold or a liability could be settled, assuming a smooth transaction occurs between participants in the market on the date of valuation.