Spot price of West Texas Intermediate in relation to the price of Brent Crude. Historically price differences between Brent and other index crudes have been based on physical differences in crude oil specifications and short-term variations in supply and demand.
When does market failure occur? Whenever resources are not allocated efficiently. ie. total surplus is not maximised. What are the main types of market failure?
Lesson Summary. Stagflation occurs when an economy is suffering from stagnation and inflation, which means there is no economic growth, high unemployment, and high prices. There is no broad consensus on what specifically causes stagflation.