11
QuizMultiple Choice

Bush and Clinton — Unit test

Question 11 • EAP-Virginia and US History B CR

The Vietnam War affected the US economy during the early 1970s by

Answer
A
lowering the deficit.
B
leading to a recession.
C
creating stagflation.
D
raising unemployment.

Explanation

The Vietnam War increased government spending, adding to inflationary pressures while the economy was slowing. This combination of high inflation and weak economic growth is called stagflation. Therefore, the best answer is creating stagflation; the war did not lower the deficit.

AI-written and checked against the verified answer.

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