After 1975,the U.S.economy continued to experience high inflation ________.
A)mainly because the public expected policymakers to continue their expansionary efforts,and this led to increases in inflation expectations
B)most likely of the cost-push kind
C)until a very aggressive commitment to anti-inflationary monetary policy helped end this Great Inflation period
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All of the choices accurately describe factors contributing to the high inflation experienced by the U.S. economy after 1975. A) Public expectations of continued expansionary policy increased inflation expectations. B) Cost-push inflation was a significant factor. C) An aggressive anti-inflationary monetary policy eventually helped to end the period of Great Inflation.