{"id":85095,"date":"2025-06-01T03:03:10","date_gmt":"2025-06-01T03:03:10","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=85095"},"modified":"2025-06-01T03:03:10","modified_gmt":"2025-06-01T03:03:10","slug":"the-situation-in-an-economy-which-is-growing-slowly-along-with-rapid-i","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-situation-in-an-economy-which-is-growing-slowly-along-with-rapid-i\/","title":{"rendered":"The situation in an economy which is growing slowly along with rapid i"},"content":{"rendered":"

The situation in an economy which is growing slowly along with rapid inflation (rising price level) is called<\/p>\n

[amp_mcq option1=”Stagnation” option2=”Deflation” option3=”Stagflation” option4=”Recession” correct=”option3″]<\/p>\n

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\n
This question was previously asked in<\/div>\n
UPSC CDS-1 – 2021<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nStagflation is an economic condition characterised by a combination of stagnant economic growth (stagnation), high unemployment, and high inflation (rising price levels). The situation described in the question – “growing slowly along with rapid inflation” – precisely defines stagflation.
\n<\/section>\n
\n– Stagnation refers to a period of slow or no economic growth.
\n– Inflation is a general increase in prices and decrease in the purchasing value of money.
\n– Stagflation combines these two undesirable phenomena.
\n– Deflation is a decrease in the general price level.
\n– Recession is a significant, widespread, and prolonged downturn in economic activity.
\n<\/section>\n
\nStagflation is particularly challenging for policymakers because measures typically used to combat inflation (like raising interest rates) can worsen unemployment and slow growth, while measures to boost growth (like increasing government spending) can exacerbate inflation. The most notable period of stagflation occurred in many developed economies during the 1970s, largely attributed to supply shocks like the oil crisis.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

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 Download PDFAttempt Online Stagflation is an economic condition characterised by a combination of stagnant economic growth (stagnation), high unemployment, and high … <\/p>\n

Detailed SolutionThe situation in an economy which is growing slowly along with rapid i<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1087],"tags":[1110,1120,1261],"class_list":["post-85095","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1110","tag-economic-development","tag-nature-of-indian-economy","no-featured-image-padding"],"yoast_head":"\nThe situation in an economy which is growing slowly along with rapid i<\/title>\n<meta name=\"description\" content=\"Stagflation is an economic condition characterised by a combination of stagnant economic growth (stagnation), high unemployment, and high inflation (rising price levels). The situation described in the question - "growing slowly along with rapid inflation" - precisely defines stagflation. - Stagnation refers to a period of slow or no economic growth. - 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-situation-in-an-economy-which-is-growing-slowly-along-with-rapid-i\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The situation in an economy which is growing slowly along with rapid i\" \/>\n<meta property=\"og:description\" content=\"Stagflation is an economic condition characterised by a combination of stagnant economic growth (stagnation), high unemployment, and high inflation (rising price levels). The situation described in the question - "growing slowly along with rapid inflation" - precisely defines stagflation. - Stagnation refers to a period of slow or no economic growth. - 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.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-situation-in-an-economy-which-is-growing-slowly-along-with-rapid-i\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:03:10+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The situation in an economy which is growing slowly along with rapid i","description":"Stagflation is an economic condition characterised by a combination of stagnant economic growth (stagnation), high unemployment, and high inflation (rising price levels). 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