2021 · Q3
The situation in an economy which is growing slowly along with rapid inflation (rising price level) is called
General KnowledgeIndian Economy
- AStagnation
- BDeflation
- CStagflation
- DRecession
Explanation
Stagflation is the combination of stagnant or slow economic growth with rapid inflation (a rising price level). Stagnation alone means slow growth without the inflation element, deflation means falling prices, and recession means falling output and employment. Since the question pairs slow growth with rapid inflation, the correct term is stagflation.