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AssignmentMultiple Choice

Inflation and Stagflation

Question 1 • * HSA 26-27 Economics

According to the article, which economic event sparked the decade-long economic crisis?

Answer
A
the Nixon administration’s wage and price “freeze”
B
the Carter administration’s refusal to support Israel
C
a sudden increase in oil prices in 1973
D
the end of the Vietnam War

Explanation

The decade-long economic crisis began after oil prices rose sharply in 1973. Higher oil costs contributed to inflation and economic hardship. The correct choice is “a sudden increase in oil prices in 1973.”

AI-written and checked against the verified answer.

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