Question:
Stagflation describes a situation of:
Stagflation describes a situation of:
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Know the characteristics of stagflation.
Updated On: Feb 11, 2026
- Rising prices and rising output
- Rising prices and falling or stagnant output
- Falling or stagnant prices and rising output
- Falling or stagnant prices and falling or stagnant output
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The Correct Option is B
Solution and Explanation
Stagflation is an economic condition characterized by rising inflation (prices) and stagnant or falling output. This combination leads to a challenging economic environment. Hence, the correct answer is (b).
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