Which is an Effect of Stagflation?
by Niranjani | Updated Oct 14, 2023
Which is an Effect of Stagflation? Trade with other economies increases, The value of a country's currency drops, Prices for goods fall sharply and suddenly, The GDP rises along with production levels
General knowledge questions are tricky to solve but some questions might be easy while some may be tough. Yes, likewise here we have come with a question "Which is an Effect of Stagflation?"
The options are
A. Trade with other economies increases
B. The value of a country's currency drops
C. Prices for goods fall sharply and suddenly
D. The GDP rises along with production levels
Look at the options carefully and think what will be the answer.
If you are not sure of the correct answer, check out the correct answer below.
Which is an Effect of Stagflation? Answer
The correct answer is - The value of a country's currency drops
Stagflation is like a double whammy for the economy. It happens when prices for things we need go up, but at the same time, businesses aren't doing well, so people might lose their jobs. This is a big problem because usually, when prices rise a lot, the economy slows down, but in stagflation, things get worse because the economy is already struggling.
Which is an Effect of Stagflation - FAQ
The value of a country's currency drops.