Inflation and Stagflation Answers

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According to the article, which economic event sparked the decade-long economic crisis?

the Nixon administration’s wage and price “freeze”

the Carter administration’s refusal to support Israel

a sudden increase in oil prices in 1973

the end of the Vietnam War

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Which of these words was first used during the 1970s economic crisis?

influx

stagflation

deficit

programs

What can you infer was behind Nixon's decision to "freeze” wages and prices?

Workers would be willing to be paid less if it would help the economy.

Consumers would buy more if inflation continued to rise.

Inflation affects wages and prices, so freezing those would halt inflation.

Rising inflation would lead to improvements in unemployment.

Look carefully at this photograph from 1973. The situation illustrated by the sign in this photo was a direct result of an action taken by:

“baby boomers.”

OPEC.

President Nixon.

President Reagan.

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