Question
Match the following inflation types with their correct
descriptions: 1. Stagflation 2. Core Inflation 3. Reflation A. When the government deliberately generates inflation through policy measures. B. Inflation excluding energy and food prices. C. High inflation coupled with high unemployment.Solution
Stagflation is high inflation with high unemployment (C), Core Inflation excludes energy and food prices (B), and Reflation involves government measures to generate inflation (A).
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