The poor economy led to stagflation, which means

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Jacquelyn Horne

11 September, 07:49

The poor economy led to stagflation, which means

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Kimora · Answer 1

Stagflation is a combination of stagnant economic growth, high unemployment, and high inflation. It's an unnatural situation because inflation is not supposed to occur in a weak economy. In a normal market economy, slow growth prevents inflation. As a result, consumer demand drops enough to keep prices from rising.

Mariela Clarke · Answer 2

Answer:Stagflation is a combination of stagnant economic growth, high unemployment, and high inflation.

Explanation:It's an unnatural situation because inflation is not supposed to occur in a weak economy. In a normal market economy, slow growth prevents inflation. As a result, consumer demand drops enough to keep prices from rising.