Stagflation:

CA Foundation · Business Economics · MTP · May 2026
Stagflation:
(A) A. means prices are falling and purchasing power is increasing
(B) B. is in the form of a low rate of growth combined with the general price level increase
(C) C. means high rate of growth combined with rise in the general price level
(D) D. means that due to increase in the cost of products, prices of final products are increasing

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. is in the form of a low rate of growth combined with the general price level increase

Topics: Business Cycles

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