Question

Trying to reduce unemployment using expansionary monetary policy during stagflation will?

A) Make inflation worse.
B) Not affect prices at all
C) Make unemployment worse
D) Reduce inflation.

Answer 1

A

Step-by-step explanation:

A stagflation is a period of inflation , high unemployment and stagnation of the economy.

An expansionary monetary policy is a policy undertaken by the Central Bank of a country to increase the money supply in the economy.

Increasing money supply in a period of stagflation would make inflation worse.