Not like inflation, where prices increase Stagflation is the state in which prices are increasing despite there being no evidence that the economy is slowing down.
<h3> what is stagflation?</h3>
Stagflation, also known as recession-inflation, is a condition in which unemployment remains consistently high, the inflation rate is so high or rising, and the rate of economic growth slows. Given that steps taken to reduce inflation may make unemployment worse, it poses a conundrum for economic policy.
<h3>What transpires in stagflation?</h3>
Stagflation is indeed the simultaneous occurrence of low growth, massive unemployment, and rising prices in an economy. Stagflation has repeatedly occurred in the developed world since the 1970s, defying economists' earlier belief that it was impossible. Policy responses to slow growth frequently make inflation worse, and vice versa.
To know more about Stagflation visit:
brainly.com/question/28177756
#SPJ4