During the 1970s, inflation in Australia:
A) reached its lowest rate (0.2 per cent) since the end of the Second World War.
B) approached hyperinflation proportions.
C) declined to 0.5 per cent as a result of the first oil price shock.
D) reached a peak of 16 per cent in 1976, then subsided during the 1980s.

Question

Quizplus · Accepted Answer

In the 1970s, inflation in Australia reached a peak of 16 per cent in 1976 and then subsided during the 1980s. Option A is incorrect as it states that inflation reached its lowest rate since the end of the Second World War, which is not supported by the information given. Option B is incorrect as there is no mention of hyperinflation proportions. Option C is incorrect as it states that inflation declined to 0.5 per cent as a result of the first oil price shock, which is not supported by the given information.

During the 1970s, Inflation in Australia