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

1. seasonal

2. frictional unenployment

3. the number of the labor force multiplied by 100 and then subtract the number of unemployed.

4. 4%

5. an increase in prices

Answer from: Quest

Where are the options

Another question on Social Studies

Social Studies, 22.06.2019 03:00

The idea that desirable traits can be bred into human beings and undesirable ones can be bred out is known as:

Answers: 1

Answer

Social Studies, 22.06.2019 16:30

Arthur met rottweiler breeders lynda and george at a dog show in rhode island. the couple, who reside in new york state, later sold several rottweiler dogs to arthur who lived in rhode island. arthur later sued lynda and george, claiming that the dogs were sick and infirm. he filed a complaint in rhode island courts, claiming that even though the dogs were sold in new york, the breeders had attended the dog show and advertised in the rottweiler newsletter which was distributed at the event in rhode island. based on the facts, do you think rhode island courts have personal jurisdiction in this case?

Answers: 3

Answer

Social Studies, 22.06.2019 19:00

Why is it necessary to obey social norms? write briefly.

Answers: 1

Answer

Social Studies, 22.06.2019 19:30

What conflict ended the false doctrine of "states rights"

Answers: 1

Answer

You know the right answer?

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