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

Question

Quizplus · Accepted Answer

The severe oil shortages of the 1970s led to a decrease in the supply of oil, causing an increase in the cost of production for businesses. As a result, businesses increased the prices of their goods and services, leading to cost-push inflation.

The Severe Oil Shortages of the 1970s in the US