Which event probably contributed to the stagﬂation of the 1970s?
A) worldwide agricultural surpluses
B) an improvement in productivity of resources
C) an appreciation in the dollar
D) a sharp rise in the price of oil

Question

Quizplus · Accepted Answer

The sharp rise in the price of oil in the 1970s, particularly after the OPEC oil embargo in 1973, contributed significantly to the stagflation of the decade. The increased cost of energy led to higher production costs and reduced economic growth, while also driving up prices and causing inflation.

Which Event Probably Contributed to the Stagﬂation of the 1970s