What Is Stagflation, and What Role Did the Middle East

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The Answer is Answer would ideally include the following. Stagflation is the economic situation that occurs when prices and unemployment rise while commercial activity declines. In the 1970s, the United States supported Israel during its conflict with Egypt and Syria. When the Arab countries in the Organization of Petroleum Exporting Countries (OPEC) lost, they retaliated by cutting off oil to the United States and its allies and quadrupling the price of oil to the rest of the world. By cutting back production and increasing prices dramatically, OPEC increased costs for a wide variety of businesses, leading to much higher unemployment throughout the West. The inflation rate rose, in some countries to as much as 20 percent, and a period of stagflation occurred in the West as a result.

What Is Stagflation, and What Role Did the Middle East

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