THE 1970S 1969 1979
FOREIGN POLICIES OF PRESIDENT NIXON
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
living standards rise and poverty rates fall over time.
|
|
|
prices and unemployment both rise rapidly over time
|
|
|
wages and productivity stay about the same over time.
|
|
|
production and consumption both rise slowly over time
|
Detailed explanation-1: -What is Stagflation? Stagflation is an economic condition when stagnant economic growth, high unemployment, and high inflation combine together. Simply put, stagflation is a portmanteau of stagnant growth and rising inflation.
Detailed explanation-2: -A portmanteau formed from “stagnation” and “inflation”, stagflation is an economic hair-raiser. Though it doesn’t happen often, we should know what it is and what effects it can have. “Stagflation” is a combination of high inflation and economic stagnation. Inflation drives prices up but purchasing power down.
Detailed explanation-3: -Stagflation: It is a state of the economy in which economic activity is showing down, but wages and prices continue to rise. The term is blend of the words stagnation and inflation. Was this answer helpful?
Detailed explanation-4: -Stagflation is a perfect storm of economic ills: slow economic growth, high unemployment, and high prices. The two root causes of stagflation economists generally agree upon are supply shocks and fiscal and monetary policies.
Detailed explanation-5: -Periods of stagflation were prevalent in the 1970s and 1980s in most major economies. This surprised economists as the dominant economic theory of the time, Keynesian macroeconomic theory, posited that increases in inflation and unemployment couldn’t happen at the same time.