Multiple Choice
What is the result of contractionary fiscal and monetary policies if an economy is suffering stagflation?
A) Unemployment may be cured but at the cost of higher inflation.
B) Inflation may be cured but at the cost of higher unemployment.
C) It will increase the levels of both unemployment and inflation.
D) It will decrease the levels of both unemployment and inflation.
Correct Answer:
Verified
Correct Answer:
Verified
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