What was one result of the inflation associated with the oil embargoes of the 1970s?
A) reduced unemployment because aggregate demand increased
B) reduced unemployment because aggregate demand fell
C) increased unemployment because aggregate demand increased
D) increased unemployment because aggregate supply fell

Question

What was one result of the inflation associated with the oil embargoes of the 1970s?  
A) reduced unemployment because aggregate demand increased 
B) reduced unemployment because aggregate demand fell 
C) increased unemployment because aggregate demand increased 
D) increased unemployment because aggregate supply fell

Quizplus · Accepted Answer

The inflation associated with the oil embargoes of the 1970s resulted in reduced aggregate supply, leading to an increase in the cost of production for businesses. As a result, businesses were forced to cut costs, reduce production, and lay off workers, leading to increased unemployment rates. Therefore, option D is the correct answer. The other options are incorrect because they do not align with the economic effects of inflation and reduced aggregate supply.

What Was One Result of the Inflation Associated with the Oil