When stagflation began to appear in the US economy in the late 1960s, economists and policymakers were perplexed because they had never seen and at the same time.

Generally in economics there is inverse relationship between inflation and unemployment, if inflation goes up , unemployment goes down and vice verse. But in stagflation situation economy faces both issues high inflation, high unemployment with stagnant GDP growth. There may be other reasons but one of main reason is printing of money by central bank with fixed supply increases inflation and unemployment at same time.

When stagflation began to appear in the US economy in the late 1960s, economists and policymakers were perplexed because they had never seen __________ and __________ at the same time.

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When stagflation began to appear in the US economy in the late 1960s, economists and policymakers were perplexed because they had never seen and at the same time.