WBCS.LIVE practice question

Stagflation is a period of _______

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Persistent high inflation combined with high unemployment
  2. Persistent high inflation combined with low unemployment
  3. Persistent low inflation combined with high unemployment
  4. Persistent low inflation combined with low unemployment

Correct answer and explanation

Correct answer: Persistent high inflation combined with high unemployment