USA HISTORY

Detailed explanation-1: -What exactly is stagflation? Stagflation is the extreme economic situation, a peculiar combination of stagnant growth and rising inflation leading to high unemployment. Generally, rising inflation is a sign of a fast-growing economy as people have more money to spend higher amounts on the same quality of goods.

Detailed explanation-2: -Stagflation is an economic cycle characterized by slow growth and a high unemployment rate accompanied by inflation. Economic policymakers find this combination particularly difficult to handle, as attempting to correct one of the factors can exacerbate another.

Detailed explanation-3: -In economics, stagflation or recession-inflation is a situation in which the inflation rate is high or increasing, the economic growth rate slows, and unemployment remains steadily high. It presents a dilemma for economic policy, since actions intended to lower inflation may exacerbate unemployment.

Detailed explanation-4: -“Stagflation” is a combination of high inflation and economic stagnation. Inflation drives prices up but purchasing power down.

Detailed explanation-5: -Frequently Asked Question about Stagflation Stagflation is a term coined in the 1970s to refer to a combination of high inflation and high unemployment.