Answer to Question #218353 in Economics for Andie

Question

4.1     Stagflation is best characterised by a(n)                and can be solved by                        .

[1]     increase in output and the price level; increasing government spending

[2]     increase in unemployment and the price level; increasing productivity [3]     decrease in economic activities and unemployment; decreasing wages [4]     declining total real production; decreasing personal income taxes

Answer 1

[2]     increase in unemployment and the price level; increasing productivity