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The term stagflation refers to a situation where
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- growth has no relation with the change in price
- rate of growth and prices both are decreasing
- rate of growth is faster than the rate of price increase
- rate of growth is slower than the rate of price increase
Correct Option: D
Stagflation is a condition of slow economic growth and relatively high unemployment. It is accompanied by a rise in prices, or inflation. Stagflation occurs when the economy isn't growing but prices are increasing, which is not a good situation for a country to be in.
