The situation in an economy which is growing slowly along with rapid inflation (rising price level) is called
[amp_mcq option1=”Stagnation” option2=”Deflation” option3=”Stagflation” option4=”Recession” correct=”option3″]
This question was previously asked in
UPSC CDS-1 – 2021
– Inflation is a general increase in prices and decrease in the purchasing value of money.
– Stagflation combines these two undesirable phenomena.
– Deflation is a decrease in the general price level.
– Recession is a significant, widespread, and prolonged downturn in economic activity.