Which of the following allegedly contributed to the 1973-1982 stagflation?
A)decreases in wage demands
B)a dramatic increase in oil prices
C)an accelerating pace of technological change
D)a marked decrease in the money supply within Canada
E)highly contractionary fiscal policy by the Canadian government

Question

Quizplus · Accepted Answer

A dramatic increase in oil prices during the 1970s, due to OPEC oil embargoes and other factors, significantly contributed to the period of stagflation by causing both inflation rates and unemployment rates to rise simultaneously.

Which of the Following Allegedly Contributed to the 1973-1982 Stagflation