The situation with increasing unemployment and inflation is terms as ?
Correct answer: C. Stagflation
- A. Hyperinflation
- B. Reflection
- C. Stagflation
- D. Galloping
Explanation
Stagflation combines stagnation, especially high unemployment or weak growth, with inflation. Hyperinflation refers only to an extremely rapid rise in prices, so it does not capture the unemployment feature.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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