Stagflation involves simultaneous high levels of

A) unemployment and interest rates.
B) interest rates and inflation.
C) unemployment and inflation.
D) economic growth and inflation.
E) stagnation and degeneracy.

Stagflation is a situation where there is a slowdown in economic growth accompanied by high levels of inflation and unemployment. Thus, choice C is the correct option as it involves simultaneous high levels of unemployment and inflation. High unemployment is a symptom of an economic slowdown, while inflation results from increasing prices of goods and services despite a sluggish economy.