Apentix/AP US History/Unit 8: Period 8 (1945-1980)/Question
AP US Historyhardmcq1 pt

Which of the following best explains the stagflation that afflicted the American economy in the 1970s?

A.Rising energy and commodity prices pushed up inflation while productivity growth stalled, leaving the economy with high prices and high unemployment at once
B.A return to the gold standard stabilized prices
C.Unemployment fell to historic lows while prices dropped
D.Wartime rationing continued through the decade

Explanation

Core Concept

The 1973-1974 oil embargo quadrupled petroleum costs just as foreign competition and the end of the postwar boom weakened growth. Conventional Keynesian remedies could not address inflation and stagnation simultaneously, discrediting old policy assumptions.

Correct Answer

ARising energy and commodity prices pushed up inflation while productivity growth stalled, leaving the economy with high prices and high unemployment at once

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