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Question
Under stagflation, the rate of economic growth is ___________.
Under stagflation, the rate of economic growth is ___________.
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Solution
The correct option is A low
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. Such kind of situation worsen the economic
condition as their is no growth of increased price level. Therefore, the rate of economic growth is low in 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. Such kind of situation worsen the economic condition as their is no growth of increased price level. Therefore, the rate of economic growth is low in stagflation.
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