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NEW QUESTION: 1
A. AL08
B. AL02
C. AL11
D. AL10
Answer: D
NEW QUESTION: 2
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Stagflation refers to:
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B. High inflation rates.
C. A combination of rising unemployment and rising real GDP.
D. High unemployment rates.
Answer: A
Explanation:
Choice "b" is correct. Stagflation occurs when the economy suffers a recession that is characterized by
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Choice "a" is incorrect. Real GDP is falling during stagflation, not rising.
Choice "c" is incorrect. High inflation rates is just one aspect of stagflation; the other is falling output and
rising unemployment.
Choice "d" is incorrect. High unemployment rates are just one aspect of stagflation; the other is a rising
overall price level (high inflation).
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