What caused stagflation in the United States during the 1970s?
A) The Federal Reserve sharply reduced the money supply.
B) Consumer optimism caused an increase in spending.
C) Members of the Organization of the Petroleum Exporting Countries (OPEC) reduced their production of oil and raised its price.
D) The federal government increased spending on social programs and the military.

Question

Quizplus · Accepted Answer

The stagflation of the 1970s was significantly influenced by OPEC's reduction in oil production and the subsequent increase in oil prices, which led to higher costs for goods and services, contributing to inflation without economic growth.

What Caused Stagflation in the United States During the 1970s