@kytphine:What Is Stagflation?Stagflation is characterized by slow economic growth and relatively high unemployment—or economic stagnation—which is at the same time accompanied by rising prices (i.e. inflation). Stagflation can be alternatively defined as a period of inflation combined with a decline in the gross domestic product (GDP).KEY TAKEAWAYSStagflation refers to an economy that is experiencing a simultaneous increase in inflation and stagnation of economic output.Stagflation was first recognized during the 1970s when many developed economies experienced rapid inflation and high unemployment as a result of an oil shock.1The prevailing economic theory at the time could not easily explain how stagflation could occur.Since the 1970s, rising price levels during periods of slow or negative economi