Inflation and Stagflation

Question 1

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

Revolt · Accepted Answer

a sudden increase in oil prices in 1973

Question 2

Which factor caused higher oil prices to directly lead to inflation?

Revolt · Accepted Answer

Companies passed on production and transportation costs to consumers.

Question 3

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

Revolt · Accepted Answer

stagflation

Question 4

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

Revolt · Accepted Answer

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

Question 5

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:

Revolt · Accepted Answer

OPEC.

Inflation and Stagflation Answers