WBCS.LIVE practice question

The term stagflation refers to a situation where:

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

Answer options

  1. Growth has no relation with the change in prices
  2. Rate of growth and prices both are decreasing
  3. Rate of growth in faster than the rate of price increase
  4. Rate of growth is slower than the rate of price increase

Correct answer and explanation

Correct answer: Rate of growth is slower than the rate of price increase