Stagflation exists when prices:
Group of answer choices
a. rise and unemployment falls
b. rise and unemployment rises
c. fall and unemployment rises
d. fall and unemployment falls

Respuesta :

Answer:

The correct answer is (B)

Explanation:

Stagflation is a mixture of fusty monetary development, high unemployment, and high inflation. It's an unnatural circumstance since swelling should happen in a weak economy. In a typical market economy, slow development stops development. Accordingly, customer demand drops enough to prevent costs from rising. Stagflation is dangerous for economic growth and it leads a country towards depression.