Rapid increase in the price level during periods of recession of high unemployment are known as ?
Correct answer: C. stagflation
- A. slump
- B. inflation
- C. stagflation
- D. stagnation
Explanation
Stagflation combines stagnant economic conditions, often with high unemployment, and inflation, meaning a continuing rise in the general price level. A slump or stagnation alone does not include rapid price increases.
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