The high rates of inflation that were experienced in the 1970s could partly be blamed on all of the following except:

Question

Quizplus · Accepted Answer

Rapid growth rates of potential GDP during the 1970s should not be blamed for the high rates of inflation in the 1970s. In fact, the rapid growth of potential GDP should have helped to keep inflation low. The other factors, such as the assumption of continued economic growth, the Vietnam war, and the high oil prices, all contributed to the high inflation rates.

The High Rates of Inflation That Were Experienced in the 1970s