USA HISTORY

Detailed explanation-1: -Stagflation is the simultaneous appearance in an economy of slow growth, high unemployment, and rising prices. Once thought by economists to be impossible, stagflation has occurred repeatedly in the developed world since the 1970s.

Detailed explanation-2: -Stagflation refers to an economy characterized by high inflation, low economic growth and high unemployment.

Detailed explanation-3: -Stagflation in the 1970s combined high inflation with uneven economic growth. High budget deficits, lower interest rates, the oil embargo, and the collapse of managed currency rates contributed to stagflation.

Detailed explanation-4: -The Phillips Curve is the graphical representation of the short-term relationship between unemployment and inflation within an economy. According to the Phillips Curve, there exists a negative, or inverse, relationship between the unemployment rate and the inflation rate in an economy.

Detailed explanation-5: -Stagflation is a term used to describe an economy experiencing significant inflation, high unemployment, and slow to no economic growth. The term is a portmanteau that combines the words stagnation in GDP and inflation. Periods of stagflation were prevalent in the 1970s and 1980s in most major economies.