USA HISTORY

Detailed explanation-1: -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.

Detailed explanation-2: -Stagflation is a combination of the words “stagnant” and “inflation, ” which are the characteristics of an economy experiencing stagflation: stagnating economic growth and high unemployment with simultaneously high inflation. The stagflation of the 1970’s was caused by a series of aggregate supply shocks.

Detailed explanation-3: -While further lowering the quit rate and the pace of wage growth will likely help bring down inflation by some amount, not much has changed to make one conclude that the unemployment rate consistent with low inflation, the so-called “natural rate, ” is higher than before.

Detailed explanation-4: -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?