- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 11. Understanding Business Cycles
- Subject 7. Inflation
CFA Practice Question
The combination of a rise in the price level and a fall in real GDP is called ______.
B. recession
C. stagflation
A. hyperinflation
B. recession
C. stagflation
Correct Answer: C
This happens when the supply curve shifts leftward - the real GDP decreases and the price level rises.
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