Q. A situation in which the inflation rate is increasing, the economic growth rate slows and unemployment remains steadily high is called –

[A] Deflation

[B] Hyperinflation

[C] Stagflation

[D] Reflation

Answer: C
Notes:

Stagflation is a situation in which the inflation rate is increasing, the economic growth rate slows, and unemployment remains steadily high. It is also known as recession inflation. It creates a problem for the policy maker as to lower the inflation rate may worsen the unemployment situation.

Source: The Indian Express