Stagflation is a period of ........

General Studies (CHSL) Indian Economy

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Stagflation is a period of .

Persistent high inflation combined with high unemployment

Persistent high inflation combined with low unemployment

Persistent low inflation combined with high unemployment

Persistent low inflation combined with low unemployment

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Explanation:

Stagflation is a combination of stagnant economic growth, high unemployment, and high inflation. It's an unnatural situation because inflation is not supposed to occur in a weak economy. In a normal market economy, slow growth prevents inflation. As a result, consumer demand drops enough to keep prices from rising.