Social Studies, 25.07.2019 13:00 denaemarie02

Stagflation occurs when high inflation combines with a. high unemployment and a low level of production. b. low unemployment and a high level of production. c. a drop in buying power and a rise in workers’ wages. d. a rise in buying power and a drop in workers’ wages.

Answers: 2

Show answers

Answers

Answer from: 20068088

The correct answer is A.

Stagflation (stagnation + inflation) is an economic scenario is which low economic growth and hight unemployment levels are combined with a inflation schedule and price inestability. To sum up, it is inflation combined with a decrease in the GDP (Gross Domestic Product).

It is a rare event and also tricky to solve for policymakers because commonly, policies which aim to decrease inflation push economic growth even further into stagnation or even negative figures.

Answer from: superangel94

Answering the question, stagflation occurs in any economy when high inflation combines with high unemployment and a low level of production. This implies the correct answer is A.

Stagnation can be defined as a condition in which there is a high rate of unemployment with slow economic growth accompanied by rising prices and inflation.

Further Explanation

Stagnation can also described as a decline in a domestic gross product as a result of inflation. Any economy facing stagnation will experience inflation and a high rise in unemployment.

Stagnation can occur due to the following reasons

Bad economic policySudden Increase in the prices of oil

In any country, stagnation is accompanied by conditions that can create lots of problems for the government.

It can result in the following

It will create a flat job rateThere will be no salary increaseThere will be no booms in the stock market within such period

Stagnation tends to develop huge problems for government authorities as most of their policies will be geared towards decreasing the effect of stagnation, which can greatly affect the unemployed people.

However, the type of policies put in place by the government to cushions the effect of stagnation can as well lead to a rise in the inflation rate.

The high unemployment rate would, in turn, result in a decline in the manner at which people spend money on goods and services. This will also result in a low level of the company’s production

LEARN MORE:

Stagflation occurs when high inflation combines with

KEYWORDS:

Answer from: Quest

nobles

explanation:

someone who has high morals and ideals or people who are royalty or who have good breeding. an example of noble is a person who is always honest and charitable. an example of noble is a king.

Answer from: Quest

your question is incomplete

explanation:

Another question on Social Studies

Social Studies, 22.06.2019 07:30

Which factor contributed to the rise of african empires such as ghana and mali?

Answers: 3

Answer

Social Studies, 22.06.2019 17:00

Which of the following events most directly contributed to the establishment of israel as a nation

Answers: 1

Answer

Social Studies, 23.06.2019 07:00

The political and economic power of roman catholic church was challenged during the reformation by

Answers: 1

Answer

Social Studies, 23.06.2019 09:30

Donald was arrested for murdering an acquaintance. at the trial, donald takes the stand and testifies that he and the victim knew each other. he admits that they would drink and use drugs together. one night while partying, donald explains in his testimony, an argument got out of hand during a card game. donald explains that the victim accused him of cheating and pulled out a knife on him and started swinging it in the air. donald said that he had no choice but to pull out his gun and shoot the victim. the jury convicted donald of manslaughter. who would argue that donald weighed the potential costs and benefits of shooting the victim and decided to pull the trigger as a result of free will? a. a rational choice theorist b. a critical criminologist c. a conflict theorist d. a positivist

Answers: 3

Answer

You know the right answer?

Stagflation occurs when high inflation combines with a. high unemployment and a low level of p...

Questions