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    Question

    In Economy condition of ‘stagflation’ indicates?

    A High inflation and low growth Correct Answer Incorrect Answer
    B High deflation and low growth Correct Answer Incorrect Answer
    C High inflation and high growth Correct Answer Incorrect Answer
    D High inflation and low unemployment Correct Answer Incorrect Answer
    E Low inflation and low growth Correct Answer Incorrect Answer

    Solution

    In economics, stagflation, a portmanteau of stagnation and inflation, is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. It raises a dilemma for economic policy, since actions designed to lower inflation may exacerbate unemployment, and vice versa.

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