Question

Stagflation describes a situation of:

• A. Rising prices and rising output
• B. Rising prices and falling or stagnant output
• C. Falling or stagnant prices and rising output
• D. Falling or stagnant prices and falling or stagnant output

Hint:

Know the characteristics of stagflation.

Answer 1

The Correct Option is B

Stagflation describes an economic condition combining rising inflation (prices) with stagnant or falling output, resulting in a challenging environment. Hence, the correct answer is (b).