25
QuizMultiple Choice

Bush and Clinton — Unit test

Question 25 • EAP-Virginia and US History B CR

Which is a true statement about the US economy during the 1970s?

Answer
A
Prices for goods and services stayed the same, but a dollar bought less than it previously had.
B
Many Americans were employed, and their wages increased dramatically.
C
Many people made less money, but a dollar bought more than it previously had.
D
Prices for goods and services increased, and a dollar bought less than it previously had.

Explanation

During the 1970s, the United States experienced high inflation: prices for many goods and services rose. As prices increased, each dollar could buy fewer goods than before, so its purchasing power fell. Therefore, “Prices for goods and services increased, and a dollar bought less than it previously had” is true.

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