SIE Exam Question 964: Answer and Explanation

Question: 964

Which of the following is the result of persistent high inflation combined with high unemployment and a slowing demand for goods and services?

• A. Deflation
• B. Inflation
• C. Reflation
• D. Stagflation

Correct Answer: D

Explanation:

Stagflation is the result of persistent high inflation combined with high unemployment and a slowing demand for goods and services.