What was "stagflation"?

A.

inflation caused by tax cuts

B.

inflation despite a stagnant economy

C.

inflation despite declining unemployment

D.

inflation stagnated by federal efforts

The Correct Answer is B

Explanation:

Stagflation means a contemporary development in prices and stagnation of economic maturity. Stagflation is a situation of delayed commercial maturity and a near increase in jobless condition or financial stagnation, followed by increasing wages, or inflation. It can also be described as inflation and a deterioration in gross domestic product.

a

Explanation:

persistent high inflation combined with high unemployment and stagnant demand in a country's economy.