The period 1974-1975 is somewhat unique in U.S. economic history due to the fact that:
A) the output was growing rapidly and the inflation rate was falling.
B) both the output and the inflation rate were falling.
C) output was falling yet the inflation rate rose dramatically.
D) output and the inflation rate were both rising.

Question

Quizplus · Accepted Answer

During the period of 1974-1975, the U.S. experienced stagflation, a situation where the economy was in recession (output falling) while inflation was rising dramatically. This was a unique economic condition that challenged traditional economic theories.

The Period 1974-1975 Is Somewhat Unique in U