The last big example of Stagflation in the U.S. was in the 1970s during the Arab Oil Crisis

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Yes, the statement is correct; the major US stagflation period, characterized by high inflation, slow economic growth, and high unemployment, peaked in the 1970s, largely triggered by the Arab Oil Embargo of 1973 and the subsequent Iranian Revolution in 1979, which drastically increased oil prices and overall costs, leaving a lasting economic scar. 

Key Factors of the 1970s Stagflation:

• Oil Shocks: The OPEC oil embargo (1973) and the 1979 Iranian Revolution caused oil prices to skyrocket, dramatically raising production and consumer costs.
• High Inflation: Increased energy costs fueled broader inflation, impacting everything from manufacturing to everyday goods.
• Slow Growth & High Unemployment: Businesses cut back due to higher costs, leading to economic stagnation (slow GDP growth) and rising joblessness.
• Policy Challenges: Traditional economic tools (like lowering interest rates) worsened inflation, while aggressive rate hikes by the Fed (under Paul Volcker) eventually broke the cycle but caused a painful recession in the early 1980s. 

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Why it was significant:

• It defied traditional economic theory, where inflation and unemployment usually moved in opposite directions (Phillips Curve).
• It highlighted US vulnerability to energy supply disruptions and had lasting impacts on economic policy and public perception. 

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