1
Question
___________ is a combination of both cost push & demand pull Inflation.
___________ is a combination of both cost push & demand pull Inflation.
Open in App
Solution
The correct option is A Stagflation
Stagflation is an
economic situation where the economy experiences the combination of inflation
and stagnation. In this kind of situation the economy experiences unemployment
with rise in the general price level. Stagnation is a
combined phenomena of demand pull and cost push inflation as general price
level starts rising due to some mismatch between the demand and supply of the
commodities as a result of which factor cost rises persistently which results
in inflation. Such kind of situation worsen economic condition as their is no benefit of increased price level.
Stagflation is an economic situation where the economy experiences the combination of inflation and stagnation. In this kind of situation the economy experiences unemployment with rise in the general price level. Stagnation is a combined phenomena of demand pull and cost push inflation as general price level starts rising due to some mismatch between the demand and supply of the commodities as a result of which factor cost rises persistently which results in inflation. Such kind of situation worsen economic condition as their is no benefit of increased price level.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
