A period of economic stagnation accompanied by rising inflat…

JAMB Economics 2023 196 views
Source: JAMB · 2023

A period of economic stagnation accompanied by rising inflation can create

  1. hyper-inflation
  2. creeping inflation
  3. stagflation ✓
  4. depression
Explanation

Stagflation is the mix of stagnant output, high unemployment and rising prices at the same time.

The question describes exactly this, so the answer is stagflation. Hyper-inflation is extremely fast price growth, not stagnation.

Was this explanation helpful?

Something wrong or missing? Tell us — we read every report and fix issues fast.

pastQuestions.ng pastquestions.ng