The correct answer is stagflation.

• Stagflation is a period of rising inflation but falling output and rising unemployment.
  • Stagflation is characterized by slow economic growth and relatively high unemployment.
  • Stagflation was first recognized during the 1970s, where many developed economies experienced rapid inflation and high unemployment as a result of an oil shock.

• Stagflation causes:
  • Stagflation occurs when the government or central banks expand the money supply at the same time they constrain.
  • It can also occur when a central bank's monetary policies create credit.
  • It is a combination of three undesirable economic situations:
    • High levels of inflation
    • High unemployment
    • Very slow growth

• Recession :
  • A recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
  • A recession just needs to be a contraction of the economy, featuring shrinking production and consumption, higher unemployment, and (sometimes) lower price levels.
  • Recessions are visible in industrial production, employment, real income, and wholesale retail trade.
• Disinflation :
  • Disinflation is a decrease in the rate of inflation.
  • A slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.
  • It is the opposite of reflation.
  • Disinflation occurs when the increase in the “consumer price level” slows down from the previous period when the prices were rising.
• Depression :
  • Economic depression is a sustained, long-term downturn in economic activity in one or more economies.
  • It is a more severe economic downturn than a recession.
  • which is a slowdown in economic activity over the course of a normal business cycle.
  • An economic depression is primarily caused by worsening consumer confidence that leads to a decrease in demand, eventually resulting in companies going out of business.
  • When consumers stop buying products and paying for services, companies need to make budget cuts, including employing fewer workers.