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Stagflation is a period of ______.

  1. A
    Persistent high inflation combined with high unemployment
  2. B
    Persistent high inflation combined with low unemployment
  3. C
    Persistent low inflation combined with high unemployment
  4. D
    Persistent low inflation combined with low unemployment

Solution & Step-by-step Explanation

Stagflation is an economic cycle characterized by stagnant economic growth, high unemployment, and high inflation. It is a portmanteau of stagnation and inflation.

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Stagflation is a period of ______.
A
Persistent high inflation combined with high unemployment
B
Persistent high inflation combined with low unemployment
C
Persistent low inflation combined with high unemployment
D
Persistent low inflation combined with low unemployment

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