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: -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.

Detailed explanation-3: -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-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?

Detailed explanation-5: -A portmanteau formed from “stagnation” and “inflation”, stagflation is an economic hair-raiser. Though it doesn’t happen often, we should know what it is and what effects it can have. “Stagflation” is a combination of high inflation and economic stagnation. Inflation drives prices up but purchasing power down.