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JAMB Economics 2014 Question 28

Question 28

Money and Inflation

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

  1. A.demand-pull inflation.
  2. B.cost-push inflation.
  3. C.hyperinflation.
  4. D.stagflation.
Show the answer and explanation

Answer: D (stagflation.)

Explanation

Stagflation is stagnation (high unemployment, low growth) plus inflation at the same time.