Unlike inflation where prices rise even if the economy is not slowing down, the situation when the economy is in fact slowing but prices are going up is called:

A. recession
B. stagnation
C. inflation
D. depression



Answer :

Final answer:

Stagflation is the term used when the economy is slowing down but prices are rising, presenting a unique challenge of high inflation during economic decline.


Explanation:

Stagflation is the situation when the economy is slowing down, but prices are going up. It is characterized by inflation coupled with stagnant growth, high unemployment, or recession. While recessions often coincide with lower inflation rates, stagflation presents the challenge of a weak economy alongside rising prices.


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