Stagflation is characterized by
A. an increase in both output and the price level.
B. a decrease in output and the price level.
C. an increase in the unemployment rate and an increase in the price level.
D. an economy which is growing at a rate equal to its historical average growth rate.
Answer:C
Stagflation is characterized by
A. an increase in both output and the price level. B. a decrease in output and the price level. C. an increase in the unemployment rate and an increase in the price level. D. an economy which is growing at a rate equal to its historical average growth rate.