0
the combination of high inflation and high unemployment during the early 1970s.
the combination of high inflation and high unemployment during the early 1970s.
Stagflation is an economic situation in which inflation and economic stagnation occur simultaneously and remain unchecked for a period of time.[1] The portmanteau "stagflation" is generally attributed to British politician Iain Macleod, who coined the term in a speech to Parliament in 1965.[2][3][4] The concept is notable partly because, in postwar macroeconomic theory, inflation and recession were regarded as mutually exclusive, and also because stagflation has generally proven to be difficult and costly to eradicate once it gets started.
Economists offer two principal explanations for why stagflation occurs. First, stagflation can result when an economy is slowed by an unfavorable supply shock, such as an increase in the price of oil in an oil importing country, which tends to raise prices at the same time that it slows the economy by making production less profitable.[5][6][7] This type of stagflation presents a policy dilemma because most actions to assist with fighting inflation worsen economic stagnation and vice versa. Second, both stagnation and inflation can result from inappropriate macroeconomic policies. For example, central banks can cause inflation by permitting excessive growth of the money supply,[8] and the government can cause stagnation by excessive regulation of goods markets and labor markets;[9] together, these factors can cause stagflation. Both types of explanations are offered in analyses of the global stagflation of the 1970s: it began with a huge rise in oil prices, but then continued as central banks used excessively stimulative monetary policy to counteract the resulting recession, causing a runaway wage-price spiral.[10]
the combination of high inflation and high unemployment during the early 1970s.
Answer: the combination of high inflation and high unemployment during the early 1970s
Add your answer:
Earn +20 pts
When rising prices occur simultaneously with high unemployment it is called?
Funnily enough, it's called stagflation...
Is inflation going on or recession?
Both inflation and recession are occurring. A special term was coined for that. It is stagflation.
What does the term stagflation reference in financial terms?
The term, stagflation, means a condition where unemployment is high, and thus, economic growth is slow. Inflation increases at a greater rate than the economy, usually making it difficult for people to keep up with rising prices.
Which economic term describes a period of slow economic growth that also has inflation?
Recession
Economic term for an economy with rising inflation and unemployment?
This is called inflation or more precisely "price inflation".
What does the term Stagflation referred to?
a period of high inflation and slow economic growth
When rising prices occur simultaneously with high unemployment it is called?
Funnily enough, it's called stagflation...
Is inflation going on or recession?
Both inflation and recession are occurring. A special term was coined for that. It is stagflation.
What does the term stagflation reference in financial terms?
The term, stagflation, means a condition where unemployment is high, and thus, economic growth is slow. Inflation increases at a greater rate than the economy, usually making it difficult for people to keep up with rising prices.
Which economic term describes a period of slow economic growth that also has inflation?
Recession
Economic term for an economy with rising inflation and unemployment?
This is called inflation or more precisely "price inflation".
Stagfation was an economic term referring to?
Stagflation was an economic condition in which unemployment was high, the economy was stagnant, but prices were rising (inflation).
What happend to the economy during stagflation?
In stagflation, you have high inflation, high unemployment, and low demand.
Why did economists invent the term stagflation to describe the economic problems in the US in the 1970s?
to describe a situation caused by a weak economy and rising prices
Why did the economists invent the term stagflation to describe the economic problems in the US during the 1970?
to describe a situation caused by a weak economy and rising prices
Why did economists invent the term stagflation to describe the economic problem in the US during the 1970s?
to describe a situation caused by a weak economy and rising prices
Why did economists invent the term stagflation to describe the economic problems in the US during the 1970s?
to describe a situation caused by a weak economy and rising prices
