stagflation is defined as. an "external shock" like an earthquake or embargo may cause. Before taking a detailed look at stagflation and its historical references, we should find a definition for it. Stagflation definition is - persistent inflation combined with stagnant consumer demand and relatively high unemployment. Stagflation is a period of rising inflation but falling output and rising unemployment. Stagflation is often caused by a rise in the price of commodities, such as oil. Definition of stagflation. Get 1:1 help now from expert Economics tutors growth recession is. Inflation as defined is a sustained increase in the general prices of goods and services. stagflation. Stagflation Facts for kids. Stagflation is defined as … Expert Answer . Did You Know? a period during which real GDP grows, but at a rate below the long-term trend of 3 percent. In the 1970s, Keynesian economists had to reconsider their ideas, as industrialized countries around the globe entered into a period of stagflation. stagflation. Stagflation Definition. Definition of Stagflation. Stagflation occurred in the 1970s following the tripling in the price of oil. Previous question Next question Get more help from Chegg. Stagflation Facts for kids The following fact sheet contains interesting facts and information on Stagflation. In economics, stagflation or recession-inflation is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. Definition: Stagflation is the economic phenomenon in which unemployment increases along with rising inflation causing demand to remain stagnant in a given period.In fact, it is an indication of an inefficient market, as traditionally, there is an inverse relationship between unemployment rates … Generally, stagflation is described as a condition of weak economic growth, high unemployment, and high inflation. Fine-tuning. Stagflation Facts - 1: Definition of Stagflation: Stagflation is a combination of inflation and stagnation.The term was coined in … It presents a dilemma for economic policy, since actions intended to lower inflation may exacerbate unemployment.. adjustments in economic policy designed to counteract small changes in economic outcomes. See the answer. That’s why it’s called “stagflation”: it’s a clear combination of inflation and economic stagnation. inflation). Stagflation is a term used by economists to define an economy that has inflation, a slow or stagnant economic growth rate, and a relatively high … Stagflation is an unusual economic situation in which high inflation (leading to increasing prices) coincides with increasing unemployment rates and decreasing levels of output/stagnation of economic growth. Stagflation Is Defined As ; Question: Stagflation Is Defined As . Stagflation: a. occurs every ten to fifteen years. This problem has been solved! b. only occurs at full employment. According to Investopedia, stagflation is a seemingly contradictory condition described by slow economic growth and relatively high unemployment, or economic stagnation, which is at the same time accompanied by rising prices (i.e. c. is defined as stagnant growth combined with deflation. Long-Term trend of 3 percent like an earthquake or embargo may cause may cause or may! 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