The severe oil shortages of the 1970s created:
A)cost push inflation.
B)demand pull inflation.
C)a recession.
D)the velocity of money to rise.

Question

Quizplus · Accepted Answer

The severe oil shortages of the 1970s led to cost push inflation as the increase in the price of oil resulted in higher costs of production for companies, which in turn led to an increase in the price of goods and services. This type of inflation occurs when the cost of production increases and the companies pass on these costs to consumers by increasing prices.

The Severe Oil Shortages of the 1970s Created