Question

Which is a true statement about the US economic climate during the 1970s?

Inflation was high and unemployment rates were low.
Inflation and unemployment rates were low.
Inflation and unemployment rates were high.
Inflation was low and unemployment rates were high.

Answer 1

During the late 1972, the US economic climate was composed of high inflation and unemployment rates and the incident is known as the great inflation of the 1970s.

The few reasons that can be cited for this incident are :-

1) Natural oil prices were high mainly

due to corruption in the

government.

2) Monetary policies implemented by

the leaders of the nation didn't

produce good results.

3) Lastly selfish and poor trade

exchange by the businessmen.

Answer 2

The correct answer to this question is option c. inflation and unemployment both were high during 1970s.

The 1970s were a time of both high inflation and high unemployment in the U.S. because of two huge oil supply stuns.

The principal oil stun was from the 1973 ban by Middle East vitality makers that caused raw petroleum costs to fourfold in about a year.

The second oil stun happened when the Shah of Iran was toppled in an unrest, and the loss of yield from Iran caused unrefined petroleum costs to twofold somewhere in the range of 1979 and 1980.

This improvement prompted both high unemployment and high inflation