The word stagflation describes a situation in which:
a. a higher price level occurs simultaneously with higher employment.
b. a lower price level occurs simultaneously with economic growth.
c. a higher price level occurs simultaneously with lower aggregate output.
d. a lower price level occurs simultaneously with federal budget deficits.
e. a higher price level occurs simultaneously with federal budget surpluses.
Question 2
A cartel is an agreement among firms to divide output of a product among members.
a. True
b. False
Indicate whether the statement is true or false
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