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asked Nov 9, 2020 in Other by manish56 (-35,170 points) Stagflation occurs when high It occurs when an unnatural effect, such as a government policy, intervenes with the natural economic flow of inflation and deflation. Stagflation is marked by an artificial scenario in which the economy is not growing and unemployment is high (signs of deflation) at the same time that an economy is dealing with higher prices (a sign of inflation). “Stagflation occurs when the government or central banks expand the money supply at the same time they constrain supply. The most common culprit is when the government prints currency. It can also occur when central bank monetary policies create credit. Stagflation also occurs when there are shocks on the supply side characterized by rapid increase in oil prices, increased government taxes, and escalating interest rates. Such a situation results in increased cost of production for firms making it costly and non-profitable hence slow economic growth.

A concept that many have a hard time understanding is stagflation. For the purposes of defining it, just consider that the word is a combination of stagnation and inflation. In terms of the economy, stagflation is said to be occurring when the inflation rate is high with a slowing economy and high unemployment. 2020-03-10 · The Federal Reserve has already slashed interest rates by a half-point to counteract a possible coronavirus-induced economic slowdown. But will the Fed soon have to fight concerns about a Start studying Inflation & Stagflation.

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A. rising prices and rising output B. rising prices and falling output C. falling prices and falling output D. falling prices and rising output 2020-02-10 Stagflation is a combination of several factors that all point toward a difficult economy. It occurs when prices are affected by inflation alongside unemployment and other economic output factors. This means people are earning less money while spending more on everything from housing and utilities to food, medicine, and consumer products.

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It occurs when its productive capacity is unable to keep pace with growing aggregate demand. • Stagflation occurs when the economy isn't growing but prices are, which is not a good situation for a country to be in. This happened to a great extent during the 1970s, when world oil prices rose dramatically, fueling sharp inflation in developed countries. What is stagflation? A concept that many have a hard time understanding is stagflation. For the purposes of defining it, just consider that the word is a combination of stagnation and inflation.
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The most common culprit is when the government prints currency It can also occur when a central bank's monetary policies create credit. Stagflation, in this view, is caused by cost-push inflation. Cost-push inflation occurs when some force or condition increases the costs of production.