What Is Stagflation, and What Was One of Its Causes

question 208

Essay

What is stagflation, and what was one of its causes in the 1970s?

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Definitions:

Cash Dividend

This is a payment made by a company out of its earnings to shareholders, distributed in the form of cash.

Par Common Stock

The nominal or face value assigned to a share of common stock in the company’s charter.

Cumulative Preferred Stock

Stock that has a right to receive regular dividends that were not declared (paid) in prior years.

Par Value

The nominal or face value assigned to a share of stock or bond, typically used in accounting as a base value rather than market value.