Which events made the inflation that began in the late 1960s worse?
A)The large tax cuts of the early 1970s
B)The oil supply shocks of the mid-1970s
C)The large increases in the exchange value of the dollar in the early 1970s
D)The large reductions in the government spending in the late 1970s

Question

Quizplus · Accepted Answer

The oil supply shocks of the mid-1970s, which caused a significant increase in oil prices, exacerbated the inflation that had already begun in the late 1960s. The other options, such as tax cuts, increases in the exchange value of the dollar, and reductions in government spending, may have had some impact on inflation, but they did not have as significant an effect as the oil supply shocks.

Which Events Made the Inflation That Began in the Late