What was “stagflation”?

Answer 1

Stagflation was a term used in the 1970s to describe a period of high inflation combined with high unemployment and stagnant economic growth. This means that prices were rising rapidly, but economic activity was not, leading to a difficult economic situation for both consumers and businesses. Stagflation was a challenging phenomenon for policymakers, as traditional methods for combating inflation or unemployment were ineffective in this type of situation.