How did the U. S. economy end up suffering both from inflation and high unemployment?

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Ximena Dennis

6 February, 13:06

How did the U. S. economy end up suffering both from inflation and high unemployment?

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Jovanny Hays · Answer 1

Inflation and unemployment rose to their peaks by the end of the 1970s. This happened because the fiscal deficit was largely financed by the federal finances. Further, an energy crisis was being faced due to the increase in the price of crude oil. This led to overall inflation and economic instability.