The American economy was in a shambles in the late 1970s, with

Question

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The American economy faced significant challenges in the late 1970s, characterized by a combination of high inflation and unemployment, a situation often referred to as "stagflation." The correct answers that describe the state of the economy during this period are:
a. Inflation hitting double digits: Inflation rates in the late 1970s were indeed very high, with the Consumer Price Index (CPI) reaching annual rates above 10%. This was one of the most pressing economic issues of the time.
b. Unemployment rates over 8%: The unemployment rate also rose during this period, although it did not consistently stay over 8%. It fluctuated and peaked at different points, reflecting the economic instability of the time.
c. High unemployment and inflation: This is a summary of the economic condition known as stagflation, where the economy experiences the dual burden of high unemployment and high inflation simultaneously, which is generally considered a difficult problem for policymakers to address because measures to reduce inflation may exacerbate unemployment, and vice versa.
d. Continuing military spending on Vietnam: This statement is not accurate for the late 1970s. The U.S. military involvement in Vietnam officially ended in 1973 with the signing of the Paris Peace Accords. Therefore, by the late 1970s, military spending was no longer focused on active combat operations in Vietnam, although the war had lasting effects on the economy.
In summary, the American economy in the late 1970s was indeed in a difficult situation with high inflation and high unemployment, but military spending on Vietnam was not a contributing factor during that specific time frame.

The American Economy Was in a Shambles in the Late