Question
What term describes a economic situation characterized
by high inflation, low economic growth, and high unemployment?Solution
Stagflation is a rare and complex economic phenomenon that combines high inflation, stagnant economic growth, and high unemployment. It occurs when an economy experiences a decline in output and a rise in prices, contrary to the typical trade-off between inflation and unemployment. The term was coined in the 1960s to describe this unique combination of economic challenges.
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