stagflation brings down
1. price
2. inflation
3. employment
4. value of money
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Stagflation is characterized by slow economic growth and relatively high unemployment—or economic stagnation—which is at the same time accompanied by rising prices (i.e. inflation). Stagflation can be alternatively defined as a period of inflation combined with a decline in the gross domestic product (GDP
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Stagflation brings down (2) Inflation.
Definition of Stagflation;
Stagflation- the price rate increases, with slow process of economic growth.
Characteristics of Stagflation;
- Stagflation is also called as economic stagflation. The process where unemployment rate is high.
- The goods and services are limited where the money supply is expanding.
- There are three causes of stagflation;
- Rise in unemployment
- Decrease in demands of goods and services
- Inflation price is high
- These causes results in decrease of economic growth and unemployment.
Hence, Stagflation occurs when there is high price inflation with decrease of economic growth.
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