What Is Stagflation?
The word joins stagnation and inflation: an economy barely grows, jobs are hard to find and prices climb quickly.
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1.What is stagflation?
The word joins stagnation and inflation: an economy barely grows, jobs are hard to find and prices climb quickly.
2.Country A has growth 4, unemployment 4 and inflation 6. What does it look like?
Jobs are easy to find and prices rise.
3.Country B has growth minus 1, unemployment 8 and inflation 1. What does it look like?
The economy shrinks but prices are calm; B and C have the same unemployment so prices tell you they differ.
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Sources (5)
- The Great Inflation (1965-1982) (Federal Reserve History (Board of Governors of the Federal Reserve System))
- Oil Shock of 1973-74 (Federal Reserve History (Board of Governors of the Federal Reserve System))
- Volcker's Announcement of Anti-Inflation Measures (Federal Reserve History (Board of Governors of the Federal Reserve System))
- Principles of Economics 3e, 24.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation (OpenStax, Greenlaw, Shapiro, MacDonald, 2022)
- Eigene Rechnung: drei erfundene Laender
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