What is one consequence of stagflation? The economy drastically slows down as money loses its buying power. Producers cannot keep up with consumer interest and raise their prices. There are not enough workers to meet the rising level of production. Demand is too high and people spend more money than they should.

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Business

Karla Berry

1 October, 13:17

What is one consequence of stagflation? The economy drastically slows down as money loses its buying power. Producers cannot keep up with consumer interest and raise their prices. There are not enough workers to meet the rising level of production. Demand is too high and people spend more money than they should.

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Taliyah Palmer · Answer 1

One consequence of stagflation is that the economy drastically slows down as money loses its buying power.

Rudy Pace · Answer 2

I believe the answer is: the economy drastically slows down as money loses its buying power.

Stagflation refers to the economic period when the number of unemployment is high followed with rising prices and inflation.

When this happen, economy will drastically slows since investors would not be interested to make their investment in this country, and the weakening currency would cause a decrease in people's purchasing power.