Budgeting · Video Lesson
What is Stagflation?
Stagflation is an unusual economic condition where growth stalls while prices keep rising and unemployment stays high. This lesson defines stagflation, explains its causes like supply shocks, describes how it affects everyday costs and jobs, and covers strategies for managing money through tough economic times.
For Teachers
Lesson at a glance
- Topic
- Budgeting & Economics
- Grade Level
- Grades 9–12 + adult
- Resource Type
- Video Lesson + Worksheet
- Estimated Time
- 30–45 minutes
- Format
- Class discussion + research activity
- Materials
- Video, worksheet, whiteboard, devices for research
What Students Learn
Learning objectives
- Define stagflation as stagnant growth plus rising prices
- Identify causes such as supply shocks and policy missteps
- Describe how stagflation affects living costs and job opportunities
- Explain personal-finance strategies for tough economic times
- Connect economic conditions to individual financial decisions
Video Lesson
Watch: What is Stagflation?
Materials
What you’ll need
- Internet access for the video
- Printed copies of the worksheet quiz (one per student)
- Whiteboard or projector
- Devices for the historical-example research activity
Key Terms
Vocabulary
- Stagflation
- An economy with stagnant growth, high unemployment, and rising prices at the same time.
- Inflation
- A general rise in prices.
- Unemployment
- The share of people who want work but can’t find a job.
- Economic growth
- An increase in the goods and services an economy produces.
- Supply shock
- A sudden disruption to the supply of a key good, like oil.
- Purchasing power
- How much your money can buy.
For Teachers
Lesson plan
Estimated time: one 30–45 minute class period.
Lesson sequence
- Introduction (5 min). Note that usually high inflation comes with a hot economy — stagflation is the troubling exception. Introduce the term.
- Watch the video (12 min). Play the lesson video. Ask students to note the causes and personal effects.
- Discussion (15 min). Cover what defines stagflation, its causes (supply shocks, policy), how it raises costs and limits jobs, and money strategies for tough times.
- Activity — research (8 min). Groups research a historical period of stagflation and how it was handled, then present.
- Quiz (8 min). Students complete the printable quiz; the answer key is included for teacher use.
Assessment
Assess participation, the research activity, and the printable quiz.
This lesson is for educational purposes only and is not financial advice.
Discussion
Discussion questions
- What are the main characteristics of stagflation?
- What can cause stagflation?
- How does stagflation affect everyday costs and job opportunities?
- What strategies can help someone manage money during stagflation?
- How do broad economic conditions shape personal financial decisions?
Printable Quiz
What is Stagflation? — Quiz & Answer Key
Multiple-choice quiz based on the video, with an answer key for teacher use.
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