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    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.
    A 1B, 2C, 3A Correct Answer Incorrect Answer
    B 1A, 2B, 3C Correct Answer Incorrect Answer
    C 1C, 2B, 3A Correct Answer Incorrect Answer
    D 1C, 2A, 3B Correct Answer Incorrect Answer
    E 1B, 2A, 3C Correct Answer Incorrect Answer

    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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