Stagflation Is Defined As ; Question: Stagflation Is Defined As . stagflation. Stagflation Facts for kids. This problem has been solved! Stagflation Definition. inflation). 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. Fine-tuning. growth recession is. Stagflation definition is - persistent inflation combined with stagnant consumer demand and relatively high unemployment. Inflation as defined is a sustained increase in the general prices of goods and services. Definition of Stagflation. adjustments in economic policy designed to counteract small changes in economic outcomes. Stagflation occurred in the 1970s following the tripling in the price of oil. 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. 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. a period during which real GDP grows, but at a rate below the long-term trend of 3 percent. Stagflation Facts for kids The following fact sheet contains interesting facts and information on Stagflation. Before taking a detailed look at stagflation and its historical references, we should find a definition for it. See the answer. Stagflation is often caused by a rise in the price of commodities, such as oil. In the 1970s, Keynesian economists had to reconsider their ideas, as industrialized countries around the globe entered into a period of stagflation. stagflation. Stagflation: a. occurs every ten to fifteen years. 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 … It presents a dilemma for economic policy, since actions intended to lower inflation may exacerbate unemployment.. Expert Answer . c. is defined as stagnant growth combined with deflation. b. only occurs at full employment. Stagflation is a period of rising inflation but falling output and rising unemployment. Did You Know? Generally, stagflation is described as a condition of weak economic growth, high unemployment, and high inflation. stagflation is defined as. 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 … an "external shock" like an earthquake or embargo may cause. 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