USA HISTORY

Detailed explanation-1: -What is Stagflation? Stagflation is an economic event in which the inflation rate is high, economic growth rate slows, and unemployment remains steadily high.

Detailed explanation-2: -Causes of stagflation: Rising inflation is often accompanied by more aggressive monetary policy from the Federal Reserve (rising interest rates), which tends to slow, or “stagnate, ” the economy.

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 an economic condition that’s caused by a combination of slow economic growth, high unemployment, and rising prices. Stagflation occurred in the 1970s as a result of monetary and fiscal policies and an oil embargo.

Detailed explanation-5: -The term ‘stagflation’ is used in economics to describe a situation where an inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high.