Saturday, October 20, 2007

OK! Time is up - from the question I posed - September 29th - My answer:

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. For these countries, including the U.S., stagnation increased the inflationary effects. A decrease in the general price level over a period of time.

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