Which event probably contributed to the stagflation of the 1970s?
A) Worldwide agricultural surpluses
B) An improvement in productivity of resources
C) An appreciation in the dollar
D) A sharp rise the price of oil

Question

Quizplus · Accepted Answer

The sharp rise in the price of oil in the 1970s, caused by the OPEC oil embargo and other geopolitical factors, contributed to an increase in production costs, decreased economic growth, and higher inflation, all of which led to the phenomenon of stagflation.

Which Event Probably Contributed to the Stagflation of the 1970s