In the mid-1970s, changes in oil prices greatly affected U.S.inflation.When oil prices rose, the U.S.experienced
A)cost-push inflation and rising output.
B)demand-pull inflation and rising output.
C)cost-push inflation and falling output.
D)demand-pull inflation and falling output.

Question

Quizplus · Accepted Answer

In the mid-1970s, the U.S. experienced cost-push inflation due to rising oil prices, which increased production costs and led to higher prices, while output fell due to the economic strain.

In the Mid-1970s, Changes in Oil Prices Greatly Affected U