Which of the following factors made it difficult for major industries to hold the line against inflation in the 1970s?
A) The quality of manufactured products increased, causing production costs to increase.
B) Higher labor costs accompanied a decline in productivity.
C) The supply of manufactured goods outstripped the demand for goods.
D) Corporate tax rates tripled during the decade.

Question

Quizplus · Accepted Answer

Higher labor costs accompanied a decline in productivity. In the 1970s, labor unions became more powerful and demanded higher wages for workers, which increased labor costs for major industries. However, productivity also declined during this time, making it difficult for industries to maintain profit margins and keep prices low. This combination of higher labor costs and lower productivity contributed to inflation in the decade.

Which of the Following Factors Made It Difficult for Major