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wage and price controls Limits imposed by the government on the amount by which wages and prices can rise, in order to reduce the inflation rate at a given unemployment rate. The Covid-19 pandemic also represents a supply shock. It is an outcome of cost-push inflation. Detailed Explanation: Stagflation is the miserable combination of rising prices and a stagnant economy, which in turn leads to higher unemployment. Define stagflation. stagflation synonyms, stagflation pronunciation, stagflation translation, English dictionary definition of stagflation. View FREE Lessons! Also called stagflation, the supply-side inflation represents an unenviable combination of low or negative growth and upward movement in prices. The stagflation of the 1970s followed two negative oil-supply shocks after the 1973 Yom Kippur war and the 1979 Iranian revolution. That’s what happens when governments throw trillions of dollars of money out of a helicopter, while infrastructure and plant capacity deteriorate. Stagflation. The 2021 stagflation—the unhappy combination of rising prices and falling output—is a supply-side phenomenon. stagflation A simultaneous combination of high unemployment and high inflation. 1.Stagflation is a combination of: a) increasing unemployment and increasing inflation. A) increasing; increasing B) decreasing; decreasing C) increasing; decreasing D) decreasing; increasing 2. b) decreasing unemployment and decreasing inflation. https://www.khanacademy.org/.../macro-price-indices-and-inflation/v/stagflation The 1970s can be seen as the time when stagflation was first recognized, with many developed economies experiencing rapid inflation and high unemployment due to an oil shock. c) increasing unemployment and decreasing inflation. wage rate The price of labor. Stagflation . 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