USA HISTORY

Detailed explanation-1: -Stagflation describes a combination of high inflation and economic stagnation as reflected by a slow growth rate and high unemployment. The stagflation of the 1970s marked the U.S. economy’s worst performance since the Great Depression.

Detailed explanation-2: -The actual word “stagflation” is a portmanteau of “stagnant” and “inflation.” You could say that stagnancy in the growth of GDP caused by high inflation results in stagflation.

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 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-5: -Stagflation is a condition in which slow economic growth (stagnation), rising prices (inflation), and rising unemployment all happen at the same time. Although it is rare for slow economic growth and high inflation to coexist, it has happened in the past, and many believe it could happen again.