During the Carter administration, inflation increased from 6.5 percent to 9.4 percent because
A) unemployment increased above the natural rate.
B) the economy experienced an oil price shock.
C) The United States was involved in a major war.
D) the Fed suspended the dollar's convertibility into gold.

Question

Quizplus · Accepted Answer

The increase in inflation during the Carter administration was primarily caused by an oil price shock in 1979 as a result of the Iranian Revolution. This led to a significant increase in the price of oil and caused overall inflation to rise.

During the Carter Administration, Inflation Increased from 6