Stagflation
What Stagflation means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Stagflation
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Stagflation in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A scenario where both unemployment and cost-push inflation increase simultaneously following an inward shift in short-run aggregate supply.
A situation where prices rise alongside falling output, which cost-push inflation can lead to.
Topics that use Stagflation
- Inflation (Pearson Edexcel A-Level)
- The AD/AS model (Pearson Edexcel A-Level)
Related terms
- Cost-push inflation
- Demand-pull inflation
- Aggregate Demand (AD)
- Business uncertainty
- Costs of production
- Deflation
- Disinflation
- Factors of production
Using Stagflation in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics B questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge