A period of slow economic growth and high inflation rates is often referred to as stagflation. Stagflation is a situation where an economy experiences stagnant or low growth, high unemployment, and high inflation rates at the same time. Stagflation can be caused by a variety of factors, such as supply shocks (such as an increase in oil prices), a decrease in aggregate demand, or a decrease in productivity. Stagflation is considered a difficult economic situation to address because traditional monetary and fiscal policies may not be effective in addressing both high inflation and slow growth simultaneously.