Stagflation is especially harmful to a country because it means that prices are rising while people are losing their jobs or do not have jobs.
Stagflation occurs when both inflation and unemployment are high and occurring at the same time.

Question

Quizplus · Accepted Answer

Stagflation is a situation where there is a combination of high inflation and high unemployment. This is harmful because rising prices make it more difficult for people to afford basic goods and services, while high unemployment means that fewer people have the income to support those rising prices. Stagflation can lead to economic instability and social unrest.

Stagflation Is Especially Harmful to a Country Because It Means