Question

The phenomenon of stagflation can be explained with which of the
following macroeconomic theories?
(a) Keynesian demand-pull theory
for Supply-side cost-push theory
(c) Classical theory
(d) Monetarist theory​

Answer 1

Answer:

c) is ur ans

hope it helps u thanks

Answer 2

The phenomenon of stagflation can be explained with the supply-side cost-push theory.

• Supply-side inflation is one of the main causes of stagflation, according to the cost-push inflation theory.
• Since rising prices typically result in lower profit margins for companies, which reduces economic activity, this situation also causes unemployment.
• The lost lesson from the 1970s is that shocks that significantly lower real national disposable income result in cost-push inflation.
• In contrast to demand-pull inflation, rising prices result in increased unemployment as opposed to rising prices producing lowering unemployment. Hence, stagflation.