Stagflation is characterized by slow economic growth and re | UPSC CSE 2023 UPSC Prelims 2023 2024

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 gross domestic product (GDP).