Stagflation was the term that described the economic situation of the United States in the 1970s: there was inflaltion despite a stagnant economy.
Explanation:
Stagflation indicates the economic problem in which, within an inflationary situation, there is a stagnation of the economy and the rate of inflation does not decrease.
Stagflation combines the terms "stagnation" and "inflation"; it is the economic situation that indicates the simultaneity of the rise in prices, the increase in unemployment and economic stagnation, entering a crisis or even a recession.
Stagflation is the word used to describe the state of an economy if there is inflation despite a stagnant economy. Inflation is usually a result of rising demand due to an growing economy, however, under stagflation this is not the case.
