Which of the following contributed to high levels of inflation in the 1970s?
i.Soviet invasion of Afghanistan
ii.loose monetary policy
iii.a productivity slowdown
A)i only
B)ii only
C)iii only
D)i and iii
E)ii and iii

Question

Quizplus · Accepted Answer

Loose monetary policy and a productivity slowdown were the two main factors that led to high levels of inflation in the 1970s. The Soviet invasion of Afghanistan did not significantly impact inflation in the US during this period.

Which of the Following Contributed to High Levels of Inflation