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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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