Answered

15. What is a decline in real GDP combined with a rise in the price level known as?

A. Depreciation
B. Depression
C. Stagflation
D. Contraction



Answer :

GinnyAnswer

Final answer:

Stagflation is a combination of declining real GDP and rising price levels, leading to economic challenges.


Explanation:

Stagflation is the term used to describe a situation where there is a decline in real GDP combined with a rise in the price level. This phenomenon is characterized by stagnant economic growth, high inflation, and increased unemployment. Stagflation poses a challenge for policymakers as traditional economic policies might not be effective in addressing both inflation and unemployment simultaneously.


Learn more about Stagflation here:

https://brainly.com/question/29552947


CandleFly

Answer: C. Stagflation

Explanation:

Stagflation is a situation consisting of both a high inflation and a high unemployment rate that occurs when the output is falling at the same time as the prices rising. Stagflation led to a destabilized economy to where families and individuals would see a decrease in their daily quality of life.

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