Final answer:
Stagflation is an economic condition featuring both high unemployment and high inflation. It's a term that was extensively used to describe economic challenges during the U.S. recession periods in the 1970s and early 1980s, countering Keynesian economic theories.
Step-by-step explanation:
The term used to describe an economic condition characterized by both high unemployment and high inflation is stagflation. This unusual combination is atypical because normally, high unemployment comes with low inflation and vice versa. The stagflation phenomenon was prominently observed during the U.S. economy's deep recession from 1973 to 1975 and the back-to-back recessions from 1980 to 1982. Traditionally, in times of recession, you would see unemployment rise as demand for goods falls, leading to lower inflation. However, during a period of stagflation, the economy experiences the worst of both situations, defying the conventional wisdom of Keynesian economics that suggested these factors typically move in opposite directions.
The term used to describe an economic condition in which the high unemployment feature of an economy in recession coincides with the large increases in prices of consumer goods (inflation) is stagflation. Stagflation refers to the unhealthy combination of high unemployment and high inflation. This phenomenon was observed in the U.S. economy during the deep recession from 1973 to 1975 and again in the back-to-back recessions from 1980 to 1982. Stagflation is a unique economic situation that traditional Keynesian economics cannot fully explain.