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Stagflation was the combination of increasing inflation and unemployment that the US was experiencing.

It was occurring because OPEC placed a trade embargo for oil on the US because the US had supported Israel in a war against Iraq.

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13y ago

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What decade had the most stagflation?

1970's


What was a major problem for the US in the late 1970?

Government programs discoruaging stagflation


What was the major problem for the US in the late 1970's?

Government programs discoruaging stagflation


What was a major problem in the US in the late 1970's?

Government programs discoruaging stagflation


Was a major problem for the US in the late 1970's?

Government programs discoruaging stagflation


What are some examples of stagflation today?

none, stagflation has only existed in the 1970's as a phenomena created by external factors. we are constantly in danger of stagflation when unemployment is high and external forces create tension in the markets, but following classical economic theories recession and inflation are mutually exclusive.


When rising prices occur simultaneously with high unemployment it is called?

Funnily enough, it's called stagflation...


How did the organization of petroleum exporting countries embargo contribute to stagflation problems in the early 1970?

oil prices increased


How did the organization of petroleum exporting countries embargo contribute to stagflation problems in the early 1970's?

oil prices increased


Why did the economists invent the term stagflation to describe the economic problems in the US during the 1970?

to describe a situation caused by a weak economy and rising prices


What happend to the economy during stagflation?

In stagflation, you have high inflation, high unemployment, and low demand.


Why did economists invent the term stagflation to describe the economic problems in the US during the 1970's?

to describe a situation caused by a weak economy and rising prices