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Start learning 50% faster. Sign in nowStagflation is characterized by slow economic growth and relatively high unemployment or economic stagnation which is at the same time accompanied by rising prices (inflation). Stagflation can be alternatively defined as a period of inflation combined with a decline in the gross domestic product (GDP). The idea became popular during the 1970s when the U.S. economy witnessed high price inflation due to the oil shock as well as an economic recession marked by negative economic growth.
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