WHAT IS STAGNATION?
An extended period of slow or no economic development is known as stagnation. Real economic stagnation is defined as yearly real GDP growth of less than 2% and is characterized by prolonged periods of high unemployment and forced part-time work. Stagnation can happen at the macroeconomic level or on a lesser scale in certain businesses or industries. Stagnation can be a result of a long-term structural situation of the economy or a transient condition like a growth recession or transient economic shock.
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