Q. Stagflation refers to:

[A] A period of rapid economic growth accompanied by low inflation and low unemployment.

[B] A situation characterized by high inflation, stagnant economic growth, and high unemployment.

[C] An economic condition where only inflation rises while unemployment remains low.

[D] A phase of an economy where deflation and high unemployment occur simultaneously.

Answer: B
Notes:

Explanation – Stagflation combines stagnation (slow economic growth) with inflation (rising prices) and elevated unemployment, making it a challenging economic condition to address.

Source: The Hindu

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