The economic condition known as stagflation was caused by

A) declining oil prices.
B) low inflation rates.
C) stagnant economic growth and low inflation.
D) stagnant economic growth and high inflation.
E) high income tax rates.

Stagflation

A combination of stagnant economic growth and high inflation present during the 1970s.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured as the annual percentage increase in real GDP.

High Inflation

A condition in the economy where the prices of goods and services rise rapidly, decreasing the purchasing power of money.