economics hard Fill in the Blank

The economic condition characterized by stagnant economic growth, high unemployment, and simultaneously high inflation is known as ___.

  1. stagflation
  2. drives out
  3. National Income
  4. rivalrous (or unregulated common)

Answer: stagflation

Stagflation is a portmanteau of stagnation and inflation. It presents a severe dilemma for policymakers because traditional monetary tools used to curb inflation (like raising interest rates) will further depress growth and worsen unemployment.

Topic Macroeconomics - Cycles
Exam Relevance UPSC Prelims, SSC CGL
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