Question

Based on the graph, which of the following statements is true?

Unemployment was worse than the Great Depression in the 1970s.
Presidents in the 1970s made effective policies to control inflation.
Americans in the 1970s experienced a steep rise in product prices.
Stagflation was the result of the Arab oil embargo in the 1970s.

Answer 1

@hannahj

Answer 2

It's D, Stagflation was the result of the Arab oil embargo in the 1970s. Stagflation in the 1970s combined high inflation with uneven economic growth. High budget deficits, lower interest rates, the oil embargo, and the collapse of managed currency rates contributed to stagflation.

(( source: https://www.investopedia.com/articles/economics/08/1970-stagflation.asp#:~:text=Stagflation%20in%20the%201970s%20combined,currency%20rates%20contributed%20to%20stagflation . ))

Answer 3

Thank you!