______ is an economic scenario where a peculiar combination of low growth and rising inflation leads to high unemployment.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Stagflation.
- Stagflation is an economic condition when stagnant economic growth, high unemployment, and high inflation combine together.
- For example, if there's a sudden, unexpected increase in the price of a commodity like oil, prices surge accordingly while profits drop.