An inflation that co-exists with high rate of unemployment is?

A. hyperinflation
B. stagflation
C. demand-pull inflation
D. cost-push inflation

Correct Answer:

Option B – stagflation

Explanation

Stagflation is a condition of slow economic growth and relatively high unemployment, or economic stagnation, accompanied by rising prices, or inflation. It can also be defined as inflation and a decline in gross domestic product (GDP).