Which of the following allegedly contributed to the stagflation in the mid-1970s?
A)appreciation of the dollar
B)a sharp drop in the prices of farm products
C)a dramatic increase in oil prices
D)rising productivity in manufacturing

Question

Quizplus · Accepted Answer

The dramatic increase in oil prices in the 1970s, particularly due to the OPEC oil embargo, led to higher costs for goods and transportation, contributing to stagflation, which is characterized by high inflation and stagnant economic growth.

Which of the Following Allegedly Contributed to the Stagflation in the Mid-1970s