Stagflation occurs when the economy experiences:
a. low unemployment and low inflation.
b. high unemployment and rapid inflation.
c. low unemployment and rapid inflation.
d. high unemployment and low inflation.
b
You might also like to view...
What is the division of labor? How does it raise efficiency and productivity?
What will be an ideal response?
When government spending is equal to the tax revenues during a specific time period, this is known as a
A) government budget deficit. B) government budget surplus. C) balanced budget. D) public debt.
For Molly, the substitution effect of a wage increase is stronger than the income effect. In response to a wage increase, will Sally work more hours or will she work fewer hours?
Suppose the balance on the current account is +$100 billion and the balance on the capital account is -$1 billion. The balance on the financial account is:
A. +$101 billion. B. -$100 billion. C. -$99 billion. D. -$101 billion.