What is one consequence of stagflation? the economy drastically slows down as money loses its buying power. producers cannot keep up with consumer interest and raise their prices. there are not enough workers to meet the rising level of production. demand is too high and people spend more money than they should.

The correct answer is the first option: one consequence of stagflation is that the economy drastically slows down as money loses its buying power.

Stagflation is known as an economic problem that occurs when there are rising inflation and unemployment which causes money to lose its original value. Thus, spending declines and loses its buying power too.

"this speech"? what speech are you talking about?