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Stagflation Definition

Stagflation is an economic condition characterized by slow growth, high unemployment, and high inflation occurring simultaneously.

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What is Stagflation?

Stagflation presents a challenge for policymakers, as measures to combat inflation can further slow growth, and vice versa.

It is considered an unusual economic condition compared with typical growth or recession cycles.

Example of Stagflation

An economy experiencing stalled growth alongside rapidly rising prices would be described as facing stagflation.

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