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Stagflation is the term used when the economy is slowing down but prices are rising, presenting a unique challenge of high inflation during economic decline.
Stagflation is the situation when the economy is slowing down, but prices are going up. It is characterized by inflation coupled with stagnant growth, high unemployment, or recession. While recessions often coincide with lower inflation rates, stagflation presents the challenge of a weak economy alongside rising prices.
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