THE COLD WAR 1950 1973
THE VIETNAM WAR
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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manufacturing declined while prices were rising
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prices for consumer goods began to fall
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the increasing cost of goods took a toll on the economy
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millions of workers lost their jobs
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Detailed explanation-1: -Key Takeaways Stagflation in the 1970s combined high inflation with uneven economic growth. High budget deficits, lower interest rates, the oil embargo, and the collapse of managed currency rates contributed to stagflation.
Detailed explanation-2: -Unemployment rates rose, while a combination of price increases and wage stagnation led to a period of economic doldrums known as stagflation. President Nixon tried to alleviate these problems by devaluing the dollar and declaring wage-and price-freezes.
Detailed explanation-3: -Stagflation is the simultaneous appearance in an economy of slow growth, high unemployment, and rising prices. Once thought by economists to be impossible, stagflation has occurred repeatedly in the developed world since the 1970s. Policy solutions for slow growth tend to worsen inflation, and vice versa.
Detailed explanation-4: -“Stagflation” is an ugly word for an ugly situation – the unpleasant combination of economic stagnation and inflation. The last time the world experienced it was the early 1970s, when oil-exporting countries in the Middle East cut supplies to the United States and other supporters of Israel.