Asked by Charlease Jordan on Apr 24, 2024
The word stagflation describes a situation in which:
A) a higher price level occurs simultaneously with higher employment.
B) a lower price level occurs simultaneously with economic growth.
C) a higher price level occurs simultaneously with lower aggregate output.
D) a lower price level occurs simultaneously with federal budget deficits.
E) a higher price level occurs simultaneously with federal budget surpluses.
Aggregate Output
The total quantity of goods and services produced in an economy at a given overall price level in a given period.
Stagflation
A situation in which the inflation rate is high, economic growth rate slows, and unemployment remains steadily high.
Price Level
A measure of the average prices of goods and services in an economy at a given time, often used to evaluate inflation or deflation.
- Recognize the causes of economic variability and the function of governmental measures in mitigating these variations.
- Examine how government policies influence economic indicators like employment, inflation, and real gross domestic product.
Learning Objectives
- Recognize the causes of economic variability and the function of governmental measures in mitigating these variations.
- Examine how government policies influence economic indicators like employment, inflation, and real gross domestic product.