Which factor 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. As wages increased, companies struggled to maintain profit margins, leading to price increases that contributed to inflation in the economy.

Which Factor Made It Difficult for Major Industries to Hold