Final answer:
Stagflation is a prolonged period of high inflation, high unemployment, and increased public fear. It occurs when an economy shifts from a controlled economy to a market-oriented economy. Stagflation was experienced in the U.S. economy during recessions in the 1970s and 1980s.
Step-by-step explanation:
A prolonged period of high inflation, high unemployment, and increased public fear is known as stagflation. Stagflation is an unhealthy combination of high unemployment and high inflation, and it often occurs when an economy shifts from a controlled economy to a market-oriented economy. Stagflation was experienced in the U.S. economy during the deep recession from 1973 to 1975, and again in back-to-back recessions from 1980 to 1982. Many nations around the world have also observed similar increases in unemployment and inflation during periods of stagflation.