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Stagflation
Boom and Bust
Stagnant growth rates and high inflation.
- Inflation rose dramatically due to the high oil prices
- This resulted in higher production costs and companies laying off workers
- Bankruptcies blossomed
- Attempts to boost the economy by pumping extra money into the economy only resulted in more inflation!
Unemployment doubled to over a million by 1975.
- It was the worst economic period since the war.