Which of the following contributed to high levels of inflation in the 1970s?
i.oil price shocks
ii.lower taxes
iii.a productivity slowdown
A)i only
B)ii only
C)iii only
D)i and iii
E)ii and iii

Question

Quizplus · Accepted Answer

The oil price shocks of the 1970s, specifically the OPEC oil embargo, significantly increased the cost of goods and services due to higher energy costs. The productivity slowdown in this period also contributed to the inflationary pressure, as the economy was producing less goods and services. Lower taxes, on the other hand, would not have a significant impact on inflation.

Which of the Following Contributed to High Levels of Inflation