Why did economists invent the term stagflation to describe the economic
problems in the united states during the 1970s?
a to describe a situation caused by a balance between the economy and
prices
b to describe a situation caused by a strong economy and falling prices
c to describe a situation caused by a weak economy and rising prices

The correct answer is C) to describe a situation caused by a weak economy and rising prices.

Economists invented the term stagflation to describe the economic problems in the United States during the 1970s, more specifically, to describe a situation caused by a weak economy and rising prices.

The term is a description of a combination of an economy stagnated, high unemployment, and high inflation. These three terms are a rare combination that occurs when the central bank increases the money supply but constrain supply. It can also be the product of the central bank raising interest rates. The term was coined during the recession in the United States from 1973 to 1975.

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