what is one consequence of stagflation?
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Stagflation In economics, stagflation, a portmanteau of stagnation and inflation, is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. It raises a dilemma for economic policy, since actions designed to lower inflation may exacerbate unemployment, and vice versa. The term is generally attributed to Iain Macleod, a British Conservative Party politician who became chancellor of the exchequer in 1970 and coined the phrase in his speech to Pa
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-   Stagflation back in the 70s was caused by rising oil prices which causes inflation, and a reduction in GDP, which was caused by various factors.
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What are 2 consequences of the French Revolution? What was the unexpected consequence of the green revolution? One of the largest, most unexpected consequences of going green is the use of natural gas as a weapon. This is most recently seen in the crisis happening in the Ukraine. … Tumbleweeds .
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What Were Some Of The Unintended Consequences Of Prohibition? What were some of the unintended consequences prohibition top 10 listverseunintended sociological imageswhat answers. Negative economic impacts of prohibition the unintended introduction consequences digital speakeasies and.
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stagflation Stagflation is difficult to control, as focusing on controlling inflation could hurt growth even further, while trying to ease credit to encourage growth could intensify inflation. The term is a portmanteau of stagnation and inflation.
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- stagflation definition, meaning, what is stagflation: san economic situation in which prices keep rising but economic activity does not increase. Learn more.
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What is Diabetes Canada's position on tax credits for people living with diabetes? Applicants with type 1 diabetes under the age 18 years may be eligible for the DTC, as long as the child’s physician certifies that the eligibility criteria, as described on form T2201 Disability Tax Credit Certificate, are met.
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Stagflation The Great Inflation. The term stagflation was first coined during a period of inflation and unemployment in the United Kingdom. The United Kingdom experienced an outbreak of inflation in the 1960s and 1970s.
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What Is Hyperinflation? What is hyperinflation’s impact? In the end, currency follows the same supply and demand dynamics of everything else. When the market is flooded with something, its value decreases. When it comes to a currency, it takes more money to buy something today than it did to buy the same thing yesterday.
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Consequences of greenhouse-effect temperature rises Consequences of greenhouse-effect temperature rises. Predicting the consequences of global warming is one of the most difficult tasks for the world’s climate researchers.
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Macroeconomics/Inflation Related terms include: deflation, a general falling level of prices; disinflation, the reduction of the rate of inflation; hyper-inflation, an out-of-control inflationary spiral; stagflation, a combination of inflation and poor economic growth; and reflation, which is an attempt to raise prices to counteract deflationary pressures.
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Inflation, Deflation and Stagflation Stagflation occurs when the economy isn't growing but prices are, which is not a good situation for a country to be in. This happened to a great extent during the 1970s, when world oil prices rose dramatically, fueling sharp inflation in developed countries.
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Macroeconomics: Government - Expenditures, Taxes and Debt Government economic actions are not without consequences, however. When governments increase their spending, crowding out can occur – government spending reduces available funds and increases the cost of capital, leading many businesses to abandon expansion projects.
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Disinflation Not to be confused with Deflation. Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.It is the opposite of reflation.Disinflation occurs when the increase in the “consumer price level” slows down from the previous period when the prices were rising. If the inflation rate is not very high to start with, disinflation can lead to deflation – decreases in the general price level of goods and services.t is the opposite of reflation. Disinflation occurs when the increase in the “consumer price level” slows down from the previous period when the prices were rising. If the inflation rate is not very high to start with, disinflation can lead to deflation – decreases in the general price level of goods and services.
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Talk:Stagflation MacLeod reportedly coined the term in a 1965 speech to the House of Commons, saying ``We now have the worst of both worlds - - not just inflation on the one side or stagnation on the other, but both of them together. We have a sort of 'stagflation' situation.
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What is Stagflation? The cause of stagflation was the oil crisis which caused an inflation in prices and higher unemployment rate.
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- What is stagflation and why is it so dangerous? The word stagflation didn't even exist until the 1970s. Gross annual products in Western nations grew by an average of 5 percent annually, fueling a slow but steady rise in prices (inflation) over the same period [source: Cleveland].
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depreciation The effect of a depreciation is to make imports (in the local currency) more expensive and exports (in the local currency) cheaper, thereby assisting in the removal of a BALANCE OF PAYMENTS deficit by acting to reduce import demand for goods and services and increasing export demand.
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- DEFINITION of 'Stagflation'. A condition of slow economic growth and relatively high unemployment-a time of stagnation-accompanied by a rise in prices, or inflation.
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- Such a requirement would have three desirable consequences: First, it would tend to make bank executives more conservative and less daring in gambling with other people's money; second, it would put this liability of financial decision makers ahead of any taxpayer bailout in case of insolvency; and third, it would create a potentially powerful diseconomy of scale within big conglomerate banks.
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Talk:Stagflation Stagflation becomes a dilemma for monetary policy when policies usually used to increase economic growth will further increase runaway inflation while policies used to fight inflation will further the decline of an already-declining economy.
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- When a risk materializes, it can become a shock, whereby a shock refers to a risk that causes a “significant” negative welfare effect (e.g., major income loss, or major illness related costs).
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1. Why is the slow growth that can result from a contractionary policy a positive effect?. A.It can increase interest rates.. B.It can decrease available credit.. C.It can increase the money supply.. D.It can decrease inflation.. . 2. If expansionary taxation policies are left unchecked, which is the most likely result?. A.reduced profits. B.reduced government spending. C.reduced production. D.reduced disposable income. 1. Why is the slow growth that can result from a contractionary policy a positive effect?. - 1593413