Q. Stagflation refers to:

[A] A period of high economic growth combined with rising inflation.

[B] A situation where economic growth slows while inflation remains high.

[C] A situation where inflation remains low while unemployment rises.

[D] A temporary phase of deflation followed by rapid economic recovery.

Answer: B
Notes:

Explanation – Stagflation is an economic phenomenon characterized by stagnant economic growth, high unemployment, and high inflation occurring simultaneously. It combines slow or negative economic growth with persistently high inflation rates, creating a challenging economic environment.

Source: The Hindu

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