What term describes a period of slow economic growth and high unemployment while prices rise?

The term that accurately describes a period of slow economic growth combined with high unemployment while prices rise is stagflation. This scenario is particularly notable because it combines elements that are generally considered contradictory: economic stagnation, which typically leads to lower prices, and inflation, which entails rising prices. Stagflation challenges conventional economic policies as traditional measures to combat inflation, such as raising interest rates, can exacerbate unemployment, while those designed to reduce unemployment, such as lowering rates, can increase inflation.

In contrast, recession is characterized by a decline in economic activity, particularly in terms of GDP, but does not specifically include rising prices. Deflation refers to a decrease in the general price level of goods and services, which is the opposite effect of inflation. Hyperinflation is an extremely high and typically accelerating inflation rate, which does not account for the accompanying high unemployment that stagflation describes. Thus, stagflation is the correct term for the economic situation presented.