Which factor contributed to the demise of stagflation during the 1982-1989 period?
A) A lessening of foreign competition
B) The decline of the monopoly power of OPEC
C) An increase in the per-unit cost of production
D) An increase in regulation of airline and trucking industries

Question

Quizplus · Accepted Answer

The decline of the monopoly power of OPEC contributed to the demise of stagflation during the 1982-1989 period, as it led to a decrease in oil prices and reduced inflationary pressures. A lessening of foreign competition or increased regulation of airline and trucking industries would not necessarily have a significant impact on stagflation. An increase in the per-unit cost of production would actually contribute to stagflation, not help end it.

Which Factor Contributed to the Demise of Stagflation During the 1982-1989