Stagflation

Stagflation consists of:

• an economy not growing

• a high unemployment rate

• high inflation

• All the above are characteristics of stagflation

When did the United States experience stagflation?

• 1950's and early 1960's

• 1960's

• 1970's

• 1990s

what is one reason why stagflation appeared in the United States economy during the 1970s

• the supply of oil increased in the United States

• 1973 OPEC embargo on oil

• a decrease in oil prices

• All the above are reasons for why stagflation existed during the 1970s

The combination of inflation and stagnating (or falling) aggregate output.

• Inflation

• Recessionary gap

• Stagflation

• Wage gap

What is stagflation?

• A period of economic growth and low inflation

• A period of economic stagnation and high inflation

• A period of high economic growth and high inflation

• A period of low economic growth and low inflation

Which of the following is a characteristic of stagflation?

• High unemployment and low inflation

• Low unemployment and high inflation

• High unemployment and high inflation

• Low unemployment and low inflation

What economic condition is typically absent during stagflation?

• High inflation

• Economic growth

• High unemployment

• Currency devaluation

Which decade is most associated with stagflation in the United States?

• 1950s

• 1960s

• 1970s

• 1980s

What major global event contributed to stagflation in the 1970s?

• The Vietnam War

• The 1973 oil crisis

• The fall of the Berlin Wall

• The Cuban Missile Crisis

How does stagflation affect consumer purchasing power?

• Increases purchasing power

• Decreases purchasing power

• Has no effect on purchasing power

• Stabilizes purchasing power