Concepts
- Negative Supply Shock
- SRAS Shifts Left
- Price Level Increases
- RGDP Decreases
- Simultaneous Increases in Inflation and Unemployment
- Cost-Push Inflation
Overview
Stagflation is widely regarded as one of the worst things that can happen to an economy. It is triggered by some sort of negative supply shock that causes the short-run aggregate supply curve to shift left. This drives up the price level while decreasing RGDP. The result is a debilitating combination of inflation and unemployment.
Materials
Lecture
Video Coming at Later Date
Quiz
Reminders Before Taking Quiz:
- When you are asked “What Period?” please only put the one digit number of your class period. For example, if you have this class 1st period, just put 1 in the box for your response.
- The password to login is CASE SENSITIVE, so please be conscious of this as you type in your password.
- If it appears to be timing out when you login, try the following troubleshooting steps:
- Restart your phone (hard shut down and turn it back on)
- Turn off WiFi (access quiz through your data carrier)
- Click the “Classroom Link” provided in the initial email. Login, and then select this quiz from the list.
- If you lost the email, you can access the “Classroom Link” by clicking here. Enter your email address and password to log in and PLEASE BE SURE TO SELECT THE PROPER QUIZ!!!
- If you take the quiz once and would like to take it again to get a better grade, sometimes it will disappear from the “pending” section. If that’s the case, click the “completed” section and select the quiz you want to retake.