The period of 1973 to 1980 can best be described as a time of
A)deflation.
B)reflation.
C)unflation.
D)stagflation.
E)disflation.

Question

Quizplus · Accepted Answer

The period from 1973 to 1980 can best be described as stagflation, which is a combination of stagnant economic growth (high unemployment) and inflation. This was due to several factors including the oil crisis and rising prices of raw materials, leading to higher costs for businesses and consumers. The government's efforts to combat inflation through monetary policy (such as raising interest rates) exacerbated the problem by causing a recession. Therefore, the period was marked by both high inflation and high unemployment, making it a prime example of stagflation.

The Period of 1973 to 1980 Can Best Be Described